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What is 'Working Capital Management'. Working capital management refers to a company's managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current liabilities, to ensure the most financially efficient operation of the company.
** In terms of formal balance sheet accounts within the organization, contemporary. working capital management involves ALL current asset accounts (cash, marketable securities, receivables, inventory, etc.) and most current liability. accounts. The primary goal of working capital management is to provide for the. necessary working capital needs of the organization at the lowest possible cost. ** Commensurate with the goal of ensuring appropriate levels of working capital to. support operations, organizations must maintain adequate levels of current assets.