Written by Drew Coles, member of the chartered institute of Management Accountants.
Working capital funds can be substantial to enable the smooth running of the company. It may be possible to reduce the money tied up in material stock, WIP and tooling to release cash into the business bank account using such methods as Just in time stock levels. This will need to be balanced appropriately so the stock levels do not fall too low as to jeopardise customer order fulfilment.