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Cash Management Free Essay, Term Paper and Book Report

Cash Management One of the most critical functions of a firm’s financial manager is that of cash management. Unlike long-term forecasting or choosing to expand a company’s fixed assets, cash management requires constant, immediate, and responsive decision-making. There exists no opportunity to consider carefully each possibility and wait to further observe trends within the market. Inventory and demand for cash change daily, therefore, the financial manager must be well-versed in the most effective ways to manage the cash a firm has, along with the most efficient ways to obtain cash as needed. Cash Management Techniques Private Citizens are often taught conservative cash management practices, but most companies do not want to keep any more cash on hand than absolutely necessary. Most companies must keep some cash for transactions, bank payments, and potential emergencies, the opportunity cost of holding an excess of cash rather than reinvesting it into current assets or growing the firm’s fixed assets is often significant. Cash management is handled though the cash-flow cycle......

Word Count: 1585
Page Count: 6.3  (250 words a page / double spaced)

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