Cash Management for Business

Introduction

‘Cash is the life blood of a business.’ ‘Without cash a business will die.’ ‘Turnover vanity, profit sanity, cash flow reality.’ All terrible clichés, but no less true for all that. Keeping the cash flowing is the indispensable task of the finance function, on which the whole enterprise depends.

I've written an article here on how to manage cash flow in a business.

This article won’t tell you how to prepare a cash flow forecast – there are plenty of accounting manuals that can do that. It will tell you how to manage and improve your process so that you can maximise your business’s cash flow.

Key Points

• Cash management is the indispensable task of the finance function
• Make the bank manager your friend
• Involve selling and buying departments in improving cash flow
• Watch for fraud
• Forecast and monitor your cash performance