Cash Management Summary
Abstract
Cash management is one of the most important function in any organization. The main aim of any organization is to increase profits as well as maximize the wealth of the shareholders. The resultant cash should thus be managed in the best way possible. The following research paper will explore the various cash management theories that are employed in the Kenyan multinational companies whether and whether they have been effective or not. In addition the research paper will also provide informed recommendation on the cash management theories that the multinational companies should apply
Introduction Cash management is very important in any organisation. Broadly defined cash management refers to the collection, concentration, and disbursement of cash. The goal is to manage the cash balances of an enterprise in such a way as to maximize the availability of cash not invested in fixed assets or inventories and to do so in such a way as to avoid the risk of insolvency. Factors that are monitored as a part of cash management include a company's level of liquidity, its management of cash balances, and its short-term investment strategies. Managing cash flow is the most important job of business managers. Efficient cash management processes are pre-requisites to execute payments, collect receivables and manage liquidity. Managing the channels of collections, payments and accounting information efficiently becomes imperative with growth in business transaction volumes. This includes enabling greater connectivity to internal corporate systems, expanding the scope of cash management services to include “full-cycle” or cash management services targeted at the needs of specific customer segments. Cost optimization and value-add services are customer demands that necessitate the creation of a mechanism to service the various customer groups. There are several cash management theories that organisation should use in order to be able to perform their tasks
Cash management is one of the most important function in any organization. The main aim of any organization is to increase profits as well as maximize the wealth of the shareholders. The resultant cash should thus be managed in the best way possible. The following research paper will explore the various cash management theories that are employed in the Kenyan multinational companies whether and whether they have been effective or not. In addition the research paper will also provide informed recommendation on the cash management theories that the multinational companies should apply
Introduction Cash management is very important in any organisation. Broadly defined cash management refers to the collection, concentration, and disbursement of cash. The goal is to manage the cash balances of an enterprise in such a way as to maximize the availability of cash not invested in fixed assets or inventories and to do so in such a way as to avoid the risk of insolvency. Factors that are monitored as a part of cash management include a company's level of liquidity, its management of cash balances, and its short-term investment strategies. Managing cash flow is the most important job of business managers. Efficient cash management processes are pre-requisites to execute payments, collect receivables and manage liquidity. Managing the channels of collections, payments and accounting information efficiently becomes imperative with growth in business transaction volumes. This includes enabling greater connectivity to internal corporate systems, expanding the scope of cash management services to include “full-cycle” or cash management services targeted at the needs of specific customer segments. Cost optimization and value-add services are customer demands that necessitate the creation of a mechanism to service the various customer groups. There are several cash management theories that organisation should use in order to be able to perform their tasks