Companies may have their level of optimal working capital that maximizes their values through the effective management of current liabilities and assets. To analyze this particular study, a total of exporters operating in Ethiopia have been taken as a sample and both primary and secondary data collection methods were used. The data gathered from the sample of the study were analyzed using a multiple linear regression model and the result reveals that working capital management which was measured by account receivables period, cash conversion cycle, and accounts payable period has a statistically significant and positive correlation with the performance of exporting firms in Ethiopia which was measured by both return on assets and return on investment. However, working capital management which was measured by the inventory conversion period has a statistically significant and positive impact on return on investment, but it has an insignificant impact on the performance of sampled export firms in Ethiopia which was measured by return on assets. Based on the result of the study, firms may need to extend credit terms for customers, may prolong their cash conversion cycle, may need an extended payment period, and may or may not hold a high volume of inventory. All extending periods and cycles shall be made up to the extent of attaining an optimal level of working capital and better to implement a conservative policy of working capital management.
It goes beyond check writing to give you a total cash management and reporting solution. Data entry is simplified by using standard vouchers for vendors to eliminate the need to re-key invoice information and distribution accounts for every transaction. When you void a check, the software automatically generates reversing entries for the distributions and places the corresponding invoices back in open payables. You can easily design your own reports and custom check formats without programming assistance. Management Report Writer lets you decide what information you want to print on the check and stub, and how this information is arranged. You can set maximum check amounts for each vendor, automatically generate vendor numbers, and select which bank account to use for payments.
Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company's financial stability. For individuals, cash is also essential for financial stability while also usually considered as part of a total wealth portfolio.
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