Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
computer science crazy
Super Moderator

Posts: 3,048
Joined: Dec 2008
15-02-2009, 12:09 AM


Cash Management Basics

Cash is your business's lifeblood. Managed well, your company remains healthy and strong. Managed poorly, your company goes into cardiac arrest.

If you haven't considered cash management an important issue, then you're probably undermining your business's short-term stability and its long-term survival. But how can you manage business cash better?
v How Do You Define "Cash Flow"?

The answer lies in the fact that the accounting rules that govern the creation of financial statements are not about tracking the actual flow of cash through your business. They are focused on measuring profit or loss -- not cash flow.

The "bottom line" of the P&L is net income. And net income does not tell you what happened to your cash balance during the period. It merely defines net income based on the accounting rules used to create the income statement.

It's an important measurement, but it is only one component of understanding and managing your cash flow.

Cash flow is made up of more than just profit and loss.

It also is affected by:

* Accounts receivable
* Inventory
* Accounts payable
* Capital expenditures
* Borrowings and debt service
* Other "timing" differences
* Operating decisions
* Customer credit policies
* Financial obligations
Use Search at wisely To Get Information About Project Topic and Seminar ideas with report/source code along pdf and ppt presenaion
seminar flower
Super Moderator

Posts: 10,120
Joined: Apr 2012
24-08-2012, 05:14 PM


.ppt   cash_management.ppt (Size: 267.5 KB / Downloads: 21)

Nature of Cash

Cash is the medium of exchange for purchase of goods and services and for discharging liabilities. In cash management the term cash has used in two senses.
Narrow sense
Broad sense
Narrow Sense: Under this, cash covers currency and generally accepted equivalents of cash, viz., cheques , demand drafts .
Broad Sense: Here, cash includes not only the above stated but also near cash assets. They are marketable securities. The marketable security can easily sold and converted into cash.

Why does a firm need cash ?

There are three primary reasons for a firm to hold cash:
To meet the needs of daily transactions
To protect the firm against uncertainties of its cash flows
To take advantage of unexpected investment opportunities

Transaction motive

Transaction motive for holding cash or near-cash balances is driven by the need to make planned payments for items, such as materials, wages, tax, rent etc.

Precautionary motive

It is driven by the need to protect the firm against being unable to satisfy unexpected demands for cash.
For ex-floods, strikes ,slow down in collection of debtors, increase in cost of raw materials etc.

Speculative motive

It refers to the desire of a firm to take advantage of oppertunities.
Ex: Purchase of material at reduced price, dealing in commodities in bulk purchasing and selling when rates are considered favourable.


Companies often have surplus funds for short period of time, before they are required for capital expenditures, loan repayment, or some other purpose.
These funds may be deployed in a variety of ways, like money market instruments, public sector bonds, Short term deposit etc.

Important Note..!

If you are not satisfied with above reply ,..Please


So that we will collect data for you and will made reply to the request....OR try below "QUICK REPLY" box to add a reply to this page

Quick Reply
Type your reply to this message here.

Image Verification
Please enter the text contained within the image into the text box below it. This process is used to prevent automated spam bots.
Image Verification
(case insensitive)

Possibly Related Threads...
Thread Author Replies Views Last Post
  SEMINAR ON ONLINE SHOPPING MANAGEMENT seminar poster 0 524 29-10-2013, 03:37 PM
Last Post: seminar poster
  ppt on Credit Management seminar projects maker 0 512 28-09-2013, 04:16 PM
Last Post: seminar projects maker
  Customer Relationship Management- The Road to Brand Indispensability seminar projects maker 0 529 27-09-2013, 04:11 PM
Last Post: seminar projects maker
  A PAPER ON CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SECTOR seminar projects maker 0 482 27-09-2013, 03:23 PM
Last Post: seminar projects maker
Last Post: seminar projects maker
  Analysis on Cash management AT NSMIMS,PALATHARA,KOLLAM ppt seminar projects maker 0 312 27-09-2013, 02:24 PM
Last Post: seminar projects maker
  Seminar On Financial Management PPT seminar projects maker 0 483 24-09-2013, 02:24 PM
Last Post: seminar projects maker
  Brand Management Facilitation: A Systems Dynamic Approach For Decision Makers seminar projects maker 0 357 24-09-2013, 12:56 PM
Last Post: seminar projects maker
  Insurance and Risk Management ppt seminar projects maker 0 522 21-09-2013, 04:39 PM
Last Post: seminar projects maker
  Communicating Corporate Social Responsibility – Brand management pdf seminar projects maker 0 548 19-09-2013, 04:31 PM
Last Post: seminar projects maker