Cash Management Paper

Topics: Finance, Accounts receivable, Electronic funds transfer Pages: 3 (1060 words) Published: March 30, 2008
Implementing cash management strategies can initiate immense ways to maximize cash flow in a firm. Assessing the current firm’s cash position and evaluating proper investment account options can assist a firm properly in accurately assessing and making fairly reliable predictions at maintaining expenses. Important tools are utilized when describing business performance and financial calculations to meet the expected objectives the firm.

Cash Management Paper
In today’s world, reliable information is imperative for decision making that involves the financing and controlling of assets. Efficient cash management processes are needed to carry out business in our intense economic world of competition and instability. Without the essential tools for allocating funds properly, a firm may not be able to pay their suppliers, employees, or the financers. Management Techniques

Superior management capabilities and tools will assist in the processing and reconciliation needs of the individual firm. Businesses engage in the production of revenue, where they are constantly generating and spending cash. Being aware of the various techniques can assist the management of the cash flow, since it may be unpredictable and uneven. Managing current assets have various forms that assist in managing the cash, marketable securities, accounts receivable, and inventory. Obtaining accurate knowledge is to asses the current cash throughout can place the firm in a position to make reliable predictions at specific key intervals and meet the company’s expenses. Maximizing efficient cash flow can help in billing, collections and payable systems.. “It's necessary to ensure that your company is using its assets and liabilities effectively, is able to meet current obligations and borrow funds when necessary, and is financially prepared to support future operations” (Small Business Learning). Float is a cash management technique that illustrates the difference of the recorded sum...
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