Managing working capital is all about optimizing a company’s current assets and liabilities to maximize financial performance. It involves putting effective processes in place that ensure cash flow remains consistent, expenses are kept under control, and profits are optimized across the business. By effectively managing working capital, businesses have more money available to reinvest in their operations, resulting in improved growth potential for the future. Additionally, well-managed working capital can help to improve a company’s financial stability, making it less subject to the ups and downs of the economy.