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Cash Management - Description and Examples
Cash Management
Cash is the lifeline of every business organization and it is essential to maintain an effective cash flow position in the organization. Every business organization hire Cashier, Accountant or Finance to collect, handle, control and invest cash to ensure optimum utilization of the firm resources.
In every business organization, like manufacturing business manufactures its product and sale to customers and received cash and if the product are sold on credit than it will be receivable to the company and there is no cash return immediately. An organization must manage its receivables to maintain the surplus balance of cash inflow. It helps the business to fulfill its immediate cash requirement. The business buy raw materials from the suppliers on credit and is paid off shortly. The business should plan its cash outflow that it can acquire an extended credit period from te creditors. This helps the business to retain its cash for a longer duration to meet the short term requirement and sudden expenses.
Cash Management - Description and Examples
Cash Management
Cash is the lifeline of every business organization and it is essential to maintain an effective cash flow position in the organization. Every business organization hire Cashier, Accountant or Finance to collect, handle, control and invest cash to ensure optimum utilization of the firm resources.
In every business organization, like manufacturing business manufactures its product and sale to customers and received cash and if the product are sold on credit than it will be receivable to the company and there is no cash return immediately. An organization must manage its receivables to maintain the surplus balance of cash inflow. It helps the business to fulfill its immediate cash requirement. The business buy raw materials from the suppliers on credit and is paid off shortly. The business should plan its cash outflow that it can acquire an extended credit period from te creditors. This helps the business to retain its cash for a longer duration to meet the short term requirement and sudden expenses.