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1) Review your current cash management system.2) Develop a budget.3) Forecast cash flow.4) Increase net cash inflow.5) Decrease net cash outflow.6) Select appropriate investments.7) Evaluate banking procedures.8) Improve your billing and collection policies.9) Analyze your inventory and purchasing practices.10) Reduce borrowing costs.11) Monitor managerial controls.
Cash MGMT is the process of managing cash inflow and cash outflow of organization at desired level. A company having good cash MGMT ensure smooth ruuning of business through paying dues amount and collecting Account recceivable on timely basis and mataining correct inventory level on timing purchase of inventory through analysis of inventory required.
there are various method applied to maintain efficient cash in business such as its very crucial point of managing cash through applying rules "pay amount for your creditors as delay as possible" & " collect amount from debtors as soon as possible".
