Understanding the financial health of your small or medium-sized enterprise (SME) hinges on your ability to track available cash, its sources, timing of inflows, and outflows. Fundamentally, cash flow management entails using incoming funds to meet business expenses, while working capital denotes the liquid funds accessible in your business accounts for operational needs and growth. Effective management involves delineating expenses to be covered directly versus utilizing company accounts or credit lines, and setting aside reserves for unforeseen expenses or emergencies to ensure optimal working capital management.