What are some of the challenges or problems associated with the management of current assets and liabilities?

A-plus writer – the value of budgeting in short-term planning

The main challenges associated with the management of current assets and liabilities include: determining an appropriate level of liquidity to cover short-term financial obligations; formulating strategies for controlling inventory levels; monitoring receivables to ensure timely payment from customers; accurately forecasting cash flow needs in order to manage cash balances; managing debt levels in order to maintain a healthy balance sheet; and assessing credit risk when issuing invoices or extending credit terms. All these activities need careful consideration on the part of managers in order for an organization’s current assets and liabilities to be managed effectively.