Cash Management


Business analysts report that poor management is the main reason for business failure. This concept describes the basics of cash management and ways to maximise cash flow.

Technique Overview

Cash Management

Cash Management Definition

Cash management forecasts cash flows as part of the working capital cycle; prepares cash and financial budgets and fund-flow statements, and manages the cash or funds flowing through the company (Armstrong, 2001). Cash management helps to ensure that there are enough cash and working capital to cover everyday company needs, without tying up funds that could be invested more profitably elsewhere, or relying too much on short-term credit facilities. Good cash management implies maintaining adequate liquidity with minimum cash in the bank (Lasher, 2010).

Cash Management Description *

* The full technique overview is available for free. Simply login to our business management platform, and learn all about Cash Management.

Business Evidence

Cash Management Strengths *

Cash Management Weaknesses *

Examples of Cash Management *

* The business evidence section is for premium members only. Please contact us about accessing the Business Evidence.

Business Application

Cash Management Implementation *

Success Factors of Cash Management *

Measures of Cash Management *

* The business application section is for premium members only. Please contact us about accessing the Business application.

Professional Tools

Cash Management Videos *

Cash Management Downloads *

* The professional tools section is for premium members only. Please contact us about accessing the professional tools.

Further Reading

Cash Management Web Resources *

Cash Management Print Resources *

Cash Management References (4 of up to 20) *

  • Armstrong, M. (2001) A handbook of management techniques: The best selling guide to modern management method. Kogan Page Publishers.
  • Brigham, E.F. and Daves, P.R. (2009) Intermediate financial management. Cengage Learning.
  • Horcher, K.A. (2005) Essentials of managing treasury. John Wiley and Sons.
  • Inc. (2000) The Art of Cash Management. Available online at (www.inc.com/magazine/19981001/1019.html).

* The further reading section is for premium members only. Please contact us about accessing the further reading.


Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Cash Management and hundreds of other essential business management techniques