Appropriate Management of Working Capital
People are known to have conducted various business over a long period of time that promoted their interaction and survival with each other. There are many factors that have changed the way people conduct business, in this case, environmental factors have played a major role. People are known to have used different ways as media of exchange to promote their survival, in this case, looking for a common media that will unify them. Moreover, these exchange of good and services are the economic drivers of any society that rely on each other for survival.
Appreciating the need for technology that has been the key driver in influencing economic development cannot go without a notice. With improved technology capital has remained to be a problem to many companies, in this case, management of working capital has remained to be a nightmare. companies have come to realize growth and development that was not there before due to improved technology where production have been increased to ensure maximum income. Without human capital into consideration, companies cannot experience the development of any kind, therefore, it is important for the company to put into consideration its input.
Income in the company is important as it is brought about by the way capital invested generate income as a reward that determines the economic status of the company. Businesses has changed the way they transact over the years due to improved technology, therefore, rendering to changes in the structures to suit the changes. Institutions such as banking have been affected adversely by the improved information technology that has promoted to changes in their structures to be at par with technology. Online banking is one of the impacts of improved technology that has made user-friendly by the improved information technology where clients have easy access to their accounts. Company should incorporate technological advancement in ensuring accountability of the resources and company finance.
Understanding how much company spent on its daily expenses over how much income it generate is crucial, since companies are able to have proper financial planning. One of the source of information that has rendered to be of great importance in planning in any given company is how good and services move in the market. To ensure appropriate action is taken during the financial crisis, people need to equip themselves with the right skills and knowledge that the technology has to offer. The availability of quantity information on the internet has made it easier the process of studying the financial trends for the purpose of planning. Advocating for financial literacy has been easier due to availability of vast information on the internet .