Cash management techniques are an important part of managing finances. It is impossible to see your money grow if there are not methods in place to make the most of the money that you have. A good start to cash management is budgeting, which is the process of tracking money in and out to get a better idea of how money is really being spent. A budget identifies where the money is going and where adjustments can be made to decrease expenses or increase revenue. Along with budgeting, it is important to track expenses in order to know how much money is being spent. Expenses can be divided into categories such as office supplies, rent and utilities. Once you have the expenses clearly laid out ways to decrease the expenses can be found which will allow the company to save money. One easy way to save on office supplies is to buy in bulk or buy direct from a distributer. This will get you a lower price for the items then at retail store and can help save money. Another example is with companies that have vehicles. Gas companies offer discount cards which could be used with all their purchases to save money. Additionally, companies that operate fleets of vehicles may benefit from contracting with a gas supplier to get their gas at a greatly discounted rate.
Investing is a great way to make your money generate more funds. This can be done by investing the money in various ways to allow it to generate interest. The more money you invest or the higher yield accounts that the money is in the more you will get in return. For individuals, investing in a 401(K) plan at work is a great way to save money for the future. This money can be deducted directly from the paycheck before it is received and invested into the account. Some companies will even match the money that is deposited into the account or match a percentage of the money. This helps the account grow even more. Having the money deducted from the paycheck before it is received is helpful because...
References: (March 2000). Finance Cash Management. Retrieved from http://www.fca.gov/examman.nsf/c63e1333b36d61fa852561ff00477356/f4aada4b4e2147188525689b007200e3
Conrad, Bonnie. (n.d.). List of cash management techniques. eHow money. Retrieved from http://www.ehow.com/list_6463556_list-cash-management-techniques.html
Joseph, Chris. (n.d.). Various cash management techniques. Retrieved from http://budgeting.thenest.com/various-cash-management-techniques-3956.html
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