The cash available to keep your business running day to day.
Working capital is the difference between current assets (cash, accounts receivable, inventory) and current liabilities (accounts payable, short-term debt, accrued expenses).
Formula: Working Capital = Current Assets − Current Liabilities
Working capital is the operational lifeline of your business. Positive working capital means you can cover short-term obligations. Negative working capital means you might struggle to pay bills, even if you're profitable on paper.
Growth often reduces working capital — which is counterintuitive. As you grow, you need more inventory, you extend more credit to customers, and you take on more obligations. Without careful management, fast growth can drain working capital faster than revenue replaces it.
CentSight tracks your working capital position in real time and alerts you when it's trending below safe levels. It connects AR, AP, and cash data to give you a complete picture of operational liquidity.