Cash management - control and regulation of cash transactions at an enterprise, bank , brokerage firm or other institution, which aims to most efficiently attract and use cash , including optimizing the timing of payments, accelerating payment receipt, optimizing the amount of free cash balance and etc.
Ensuring Efficiency
To effectively manage cash and cash flow , the following conditions must be met:
- forecast of possible receipts and payments ensuring timely compliance by the company with its obligations;
- financial management to attract funds from investors and banks and effective control over borrowing;
- effective management of operating activities aimed at reducing the amount of funds required to ensure the operation of the company;
- the creation and control of a portfolio of such goods and services that constantly generate cash. rather than consume them;
- excess cash management plan [1] .
Notes
- ↑ John Tennent, 2014 , p. 14.
Literature
- John Tennent. Cash Management: How Not to Be Stranded = A Credit Crunch. - M .: Alpina Publisher , 2014. - 208 p. - ISBN 978-5-9614-4646-3 .