What is cash management process

Question

Accepted Answer

Cash management process refers to the set of activities and strategies used by businesses to optimize their cash flow and liquidity.

Cash management involves monitoring and controlling the inflow and outflow of cash within an organization.
It includes activities such as cash forecasting, cash positioning, cash pooling, and cash concentration.
Cash management aims to ensure that a company has enough cash on hand to meet its financial obligations while maximizing the return on excess cash.
Effective cash management can help businesses reduce borrowing costs, minimize idle cash, and improve overall financial stability.
Examples of cash management techniques include implementing cash flow projections, utilizing electronic payment systems, and optimizing working capital.
Cash management also involves managing cash balances across different accounts and optimizing interest earned on idle cash.
It may involve negotiating favorable terms with banks, implementing cash flow controls, and utilizing cash management software or platforms.
Cash management is crucial for businesses of all sizes and industries to maintain financial health and support growth.
It requires regular monitoring, analysis, and adjustment of cash flow strategies based on changing business needs and market conditions.

Accepted Answer

ATM cash management software used to forecast optimal cash demand and replenishment data to calculate cost optimisation