Cash Management

Cash management is the process of collecting, handling or managing, and using cash, and involves assessing market liquidity, cash flow, investments, etc. Cash management is important for both individuals and corporations, and is a key component of financial stability. One of the main financial service providers for the custody of cash assets are banks.

Here are some useful cash management techniques that both individuals and companies can use to maintain financial stability, grow their business, survive losses and economic downturns, and so on.

Monitor your cash flow regularly — create a cash flow budget that charts finances for short term & long term.
Bill promptly & accurately — establish a regular billing schedule to stay on top of things.
Encourage faster payments — you can offer discounts for early payment, but don’t give too much of a discount that it will become a financial burden.
Designate a cash flow monitor — choose a trustworthy employee to monitor cash flow.
Cut costs where you can — make sure to not spend more than you can handle.

Get a (business) line of credit — they are good insurance policies against cash flow problems.
Delay payments to vendors — it’s worthwhile to wait if there are incentives available, but make sure to not risk the late feed.
Use available technology — i.e. one of the many available professional accounting software solutions to access your financials from anywhere and at any time.
Use banks wisely — they will help you recognize your cash flow, keep track of it & also offer useful services (such as overdrafts) that are great for businesses.

Introduction to Cash Management Process

CashManager: An introduction

The importance of cash management during the crisis – the impact of the pandemic

Here are some useful cash management techniques that both individuals and companies can use to maintain financial stability, grow their business, survive losses and economic downturns, and so on.

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