Definition
Cash management refers to the process of collecting, handling, and optimizing a company�s cash inflows and outflows to ensure liquidity and financial stability. It involves short-term planning to maintain adequate cash reserves while maximizing efficiency.
Related Services
Banking institutions, financial advisors, and corporate treasury services offer cash management solutions, including cash forecasting, liquidity management, and payment processing tools.
Problem and Application
Poor cash management can lead to cash shortages, missed payments, or inefficient use of funds. Businesses must implement cash flow forecasting, budgeting, and financial controls to maintain operational stability and growth.
Conclusion
Effective cash management is crucial for business success. Proper planning and financial oversight help companies maintain liquidity, minimize risk, and optimize financial performance.
