Business
What Working capital means on the Business page
Understand outstanding receivables, outstanding payables, net working position, and stock tied up at cost.
The Working capital section gives a simple view of the money position across records. It helps you see money expected in, money owed out, and money tied up in stock.
What to check
- Outstanding receivables show money still expected from invoices.
- Outstanding payables show money still owed on supplier bills.
- Net working position compares receivables less payables.
- Stock tied up at cost shows capital sitting inside inventory.
- A negative net working position can mean you owe more on bills than customers owe you on invoices.
- A positive net working position can mean receivables are higher than payables.
Useful tips
- Working capital is not the same as cash available today.
- Receivables still need to be collected.
- Payables still need to be paid.
- Stock may need time to sell before it becomes cash.
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Bizwazi helps small businesses record sales, expenses, invoices, inventory, bills, transfers and daily balances so the money makes more sense.