Date Added: Feb 2013
A managerial accounting strategy focusing on maintaining efficient levels of both components of working capital, current assets and current liabilities, in respect to each other is called working capital management. Working capital management ensures a company has sufficient cash flow in order to meet its short-term debt obligations and operating expenses. In economic and industrial development of an economy the prominence of SME sector cannot be understated, as it play vital role in elevating unemployment. In Pakistan the SME sector provides employment up to 78% of the non-agricultural work force, besides this SME sector play significant role in boosting many of the macro economic variables in Pakistan's gloomy economy.