Cash Management Paper - 1053 Words

Abstract Implementing cash management strategies can initiate immense ways to maximize cash flow in a firm. Assessing the current firm’s cash position and evaluating proper investment account options can assist a firm properly in accurately assessing and making fairly reliable predictions at maintaining expenses. Important tools are utilized when describing business performance and financial calculations to meet the expected objectives the firm. Cash Management Paper In today’s world, reliable information is imperative for decision making that involves the financing and controlling of assets. Efficient cash management processes are needed to carry out business in our intense economic world of competition and instability. Without the†¦show more content†¦Ã¢â‚¬Å"When the economy is strong, companies can lapse into sloppy cash management practices† (Jill Andresky Fraser, 1998). Two types of sweep accounts are available for the decision of the fees that can be charged. Controlled-investment accounts are more profitable of the sweep accounts, maintaining enough funds to cover checks while the other funds are placed into overnight investments. End-of-day sweep accounts are safer for the small-business owners, but offer a late hour cutoff with controlled investments. â€Å"When the firm has excess cash, it will invest in marketable securities, and when it needs cash for current assets, it will usually either sell marketable securities or borrow funds from short-term leaders† (Block, Stanley B., 2005). Short-term Financing â€Å"The financial manager must give careful attention to the growth in sales and the relationship of the production process to sales† (Block, Stanley B., 2005). The financial manager should keep notice of the movements in the account for the proper structure and progress. Short-term financing maintains an approximate 40% of the accounts payable or credit. Marketable securities for short term financing can be obtained through credit from various suppliers. Banks have become more international to be able to accommodate the rise of the international business. These financial institutions have been able to display an enormous enhancement of being able to lend money since the late 1990s. These customers mayShow MoreRelatedCash Management Techniques and Methods of Short-Term Financing1283 Words   |  6 PagesIntroduction Proper cash management and efficient short-term financing are both important and beneficial to a company in order to maintain a competitive market share, which will increase profit potential and shareholder value through rising stock. Cash management can be used to lower or eliminate idle cash balances that do not earn revenue, using the freed up cash as sources for short-term financing through interest building securities. 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