Discussions
What is Cash Management?
23 days ago by accountingbyte
Cash management is a process through which cash in a firm is collected, handled and invested to provide liquidity, stability and profitability. It entails tracking cash receipts and expenditures, optimization of working capital, and adequate funds to cover the short-term liabilities. Good cash management assists companies to avoid shortages of cash, minimize idle balances and take sound financial decisions. Healthy financial operations of companies can be ensured by proper cash flow forecasting, schedule of payments, and collection mechanisms thus preventing unnecessary borrowing. Simply put, cash management is very important aspect of financial control and sustainability within any organization.