Archive about 'Cash Management'
Tweet My company is in very tight cash flow situations. Can you tell me how to improve the company’s present tight cash flow situations? Without the right level of liquidity ( cash is not equal to profit), a company might be not able to survive. Hence, the company’s first task is to improve its cash […]
Tweet The main differences are as follows: 1 A cash flow statement is concerned only with the change in cash position while a fund flow analysis/statement is concerned the change in working capital position 2 Cash is part of working capital and an improvement in cash position results in improvement in funds position but the […]
Tweet Cash management originated as a means of dealing with float. Incidentally, the first modern cash management technique, lockbox banking was an attempt to reduce both mail and processing times in order to make incoming funds more quickly available to the company. So what is float? Float, for the PAYER refers to the time that […]
Tweet Cash Management:- Is the maintaining of liquidity of a firm to minimize the risk of insolvency. ( An insolvent company is one where it is unable to meet its maturing liabilities on time because it has inadequate liquidity to meet its debt obligation) Cash Management is also about the proper balancing of keeping cash […]
Tweet Optimizing Working Capital By Cash Management Importance of Cash: Cash is the balancing figures between debtors, stock and creditors. Without adequate cash to meet working capital demands, it is impossible to extend credit, order stock or pay creditors. Managing Cash or Cash management involved the following: efficient banking-making sure money […]