Cash management is vital for any business as it ensures optimal use of funds, maintains liquidity for immediate obligations, reduces borrowing costs, and enables strategic decision-making. It improves financial stability, cash flow forecasting, supplier relationships, and compliance with financial obligations. Effective cash management is essential for sustaining and growing a business by promoting financial discipline and maximizing the utilization of available resources.
At the strategic level, we advise about appropriate choices, the trade-offs and compromises involved when financial decisions are taken.
We help organisation in monitoring cash flow and measuring how much money will be available to invest and how much more it could raise, on what terms, at what cost and where from.
Cash Management is the process of managing an organization’s cash flow, including the collection, disbursement, and investment of cash. It aims to optimize the use of cash by ensuring that funds are available when needed, minimizing the risk of fraud or theft, and maximizing the return on investment.
Cash Management is important because it ensures that an organization has enough cash on hand to meet its financial obligations, such as paying bills and payroll. It can also help organizations optimize their cash position by identifying opportunities to invest excess cash and reduce borrowing costs.
A Cash Flow Statement is a financial statement that shows the inflows and outflows of cash for a given period. It provides insight into an organization’s liquidity and cash flow management.
Various means of funding include equity financing, debt financing, grants, donations, venture capital, angel investing, private equity, initial public offerings (IPOs), and bank loans.
Hiring a consultant or advisor for Cash Management can provide expertise, objectivity based on their working experience across various industries. Which will result in improved financial performance and stability.