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 *

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Business Evidence

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Cash Management Weaknesses *

Examples of Cash Management *

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Business Application

Cash Management Implementation *

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Measures of Cash Management *

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Professional Tools

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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).

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