Title: Top Cash Management Strategies to Manage Cash Effectively - QuickBooks
Headings: Top Cash Management Strategies to Manage Cash Effectively
Top Cash Management Strategies to Manage Cash Effectively
What is Cash Management?
Functions of Cash Management
I. Cash Planning
What is a Cash Budget?
II. Managing Cash Flows
Accounts receivable
Accounts Payable
III. Determining Optimal Cash Balance
IV. Investing Idle Cash
Cash Flow Management Strategies
1. Collection Policy
2. Offer Discounts
3. Manage Inventory Effectively
4. Better Systems
Worth the Effort
You May Also Read:
All Topics
Accounting & Taxes
Marketing

Content: You May Also Read
Small Business Tip: Manage Accounts Receivable To Boost Cash Flow
Accounts Payable
Business owners also need cash to make payroll, pay vendors, and possibly for debt payments. Your accounts payable balance represents bills you must pay within 12 months and that balance is a current liability. Thus, you need to access a line of credit or raise more capital through a stock or bond offering if cash inflows are insufficient. Hence, a business needs to manage cash effectively to avoid excess cash or cash deficits. III. Determining Optimal Cash Balance
It is important for a business to have an ideal cash balance in order to meet its day to day obligations. Also, it needs cash that is sufficient enough to provide a cushion to business in unforeseen times. So, a business needs to consider following factors to determine the optimal cash balance: risk associated with maintaining a given cash balance
returns expected as an outcome of maintaining such a cash balance
Thus, a business suffers from cash shortage if it maintains a small amount of cash balance.