SlideShare a Scribd company logo
CASH MANAGEMENT
• Cash Management refers to
optimum utilization of cash to
ensure liquidity and profitability of
business.
• It is thus concerned with the
collection, disbursement and
investment of cash in efficient
manner.
CASH
COINS
NOTES
DEMAND
DEPOSITS
LIQUID
ASSETS
CHEQUES
MOTIVES FOR HOLDING CASH
• TRANSACTION MOTIVE – Cash is required in business to meet
operational expenses like utility bills, salary and wages, travelling
expenses, repair and maintenance, accounting expenses, taxes etc.
• PRECAUTIONARY MOTIVE – Cash is required as provision to meet
unexpected contingencies in shorter period of time.
• SPECULATIVE MOTIVE- Cash should also be kept to grab profitable
opportunities of investment or profit booking as and when the prices are
low or favorable.
OBJECTIVES OF CASH MANAGEMENT
• Optimum cash balance
• Prompt collection from debtor
• Investment of excess cash to
earn profitablity
• Controlling cash inflow and
outflow
• Meeting payment schedule
FUNCTIONS OF CASH MANAGEMENT
1. RECEIVABLES MANAGEMENT
2. INVENTORY MANAGEMENT
3. PAYABLES MANAGEMENT
4. SHORT TERM INVESTMENTS
5. FORECAST & PLANNING
TOOLS FOR CASH CONTROL
• CASH BUDGET - The Cash Budget is a budget prepared to estimate
the cash inflows and outflows during a specific period of time in future.
• CASH FLOW STATEMENT – The Cash Flow Statement is a financial
statement that summarizes the cash inflows and outflows through three
major activities (operating, investing and financing).
• RATIO ANALYSIS – Liquidity ratios like current ratio, quick ratio and
cash ratio measures the financial strength of company in terms cash
and marketable securities available in the company to pay off short
term obligations.
THANK YOU FOR WATCHING

More Related Content

What's hot

Cash management (4)
Cash management (4)Cash management (4)
Cash management (4)
PrachiRao4
 
CASH MANAGEMENT
CASH MANAGEMENTCASH MANAGEMENT
CASH MANAGEMENT
Shilpi Panchal
 
Receivables management
Receivables managementReceivables management
Receivables management
Malathi Selvakkumar
 
Capital structure-theories
Capital structure-theoriesCapital structure-theories
Capital structure-theories
Dr. Soheli Ghose Banerjee
 
Business finance
Business financeBusiness finance
Business finance
Hamza Ali
 
cash flow and fund flow ppt
 cash flow and fund flow ppt cash flow and fund flow ppt
cash flow and fund flow ppt
Arhaam Ansari
 
Financial management scope, elements, functions and importance
Financial management scope, elements, functions and importanceFinancial management scope, elements, functions and importance
Financial management scope, elements, functions and importance
AMALDASKH
 
Receivable management or accounts receivable management
Receivable management or accounts receivable managementReceivable management or accounts receivable management
Receivable management or accounts receivable management
Mohammed Jasir PV
 
Capital Budgeting
Capital BudgetingCapital Budgeting
Capital Budgeting
Dayasagar S
 
Financial management
Financial managementFinancial management
Financial management
Ramaswamy Ramakrishnan
 
Lease financing
Lease financingLease financing
Lease financing
Kiruba Devi
 
Capital structure ppt
Capital structure pptCapital structure ppt
Capital structure ppt
Aarti Choudhary
 
Finance function
Finance functionFinance function
Finance function
Ajith Thambi
 
B.Com-Cash Management
B.Com-Cash ManagementB.Com-Cash Management
B.Com-Cash Management
St Mary's College,Thrissur,Kerala
 
Working capital
Working capitalWorking capital
Working capital
Suresh Thengumpallil
 
Capital budgeting’ OF FINANCIAL MANAGEMENT
Capital budgeting’ OF FINANCIAL MANAGEMENTCapital budgeting’ OF FINANCIAL MANAGEMENT
Capital budgeting’ OF FINANCIAL MANAGEMENT
Vivek Chandraker
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities management
Mohammed Jasir PV
 
ALL ABOUT Working capital management
ALL ABOUT Working capital management ALL ABOUT Working capital management
ALL ABOUT Working capital management
Mohammed Jasir PV
 
Cost of capital
Cost of capital   Cost of capital
Cost of capital
BELLARMINDIANA
 
Working capital management
Working capital managementWorking capital management
Working capital management
ankita3590
 

What's hot (20)

Cash management (4)
Cash management (4)Cash management (4)
Cash management (4)
 
CASH MANAGEMENT
CASH MANAGEMENTCASH MANAGEMENT
CASH MANAGEMENT
 
Receivables management
Receivables managementReceivables management
Receivables management
 
Capital structure-theories
Capital structure-theoriesCapital structure-theories
Capital structure-theories
 
Business finance
Business financeBusiness finance
Business finance
 
cash flow and fund flow ppt
 cash flow and fund flow ppt cash flow and fund flow ppt
cash flow and fund flow ppt
 
Financial management scope, elements, functions and importance
Financial management scope, elements, functions and importanceFinancial management scope, elements, functions and importance
Financial management scope, elements, functions and importance
 
Receivable management or accounts receivable management
Receivable management or accounts receivable managementReceivable management or accounts receivable management
Receivable management or accounts receivable management
 
Capital Budgeting
Capital BudgetingCapital Budgeting
Capital Budgeting
 
Financial management
Financial managementFinancial management
Financial management
 
Lease financing
Lease financingLease financing
Lease financing
 
Capital structure ppt
Capital structure pptCapital structure ppt
Capital structure ppt
 
Finance function
Finance functionFinance function
Finance function
 
B.Com-Cash Management
B.Com-Cash ManagementB.Com-Cash Management
B.Com-Cash Management
 
Working capital
Working capitalWorking capital
Working capital
 
Capital budgeting’ OF FINANCIAL MANAGEMENT
Capital budgeting’ OF FINANCIAL MANAGEMENTCapital budgeting’ OF FINANCIAL MANAGEMENT
Capital budgeting’ OF FINANCIAL MANAGEMENT
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities management
 
ALL ABOUT Working capital management
ALL ABOUT Working capital management ALL ABOUT Working capital management
ALL ABOUT Working capital management
 
Cost of capital
Cost of capital   Cost of capital
Cost of capital
 
Working capital management
Working capital managementWorking capital management
Working capital management
 

Similar to Cash Management

ppt management.pptx cash management presentation
ppt management.pptx cash management presentationppt management.pptx cash management presentation
ppt management.pptx cash management presentation
khanikra33
 
ppt management cash.pptx cash management
ppt management cash.pptx cash managementppt management cash.pptx cash management
ppt management cash.pptx cash management
khanikra33
 
CASH MANAGEMENT.pptx cash management's h
CASH   MANAGEMENT.pptx cash management's hCASH   MANAGEMENT.pptx cash management's h
CASH MANAGEMENT.pptx cash management's h
khanikra33
 
Cash management
Cash managementCash management
Managerial finance
Managerial financeManagerial finance
Managerial finance
Mathews Saji
 
Fm ii unit 02
Fm ii unit 02Fm ii unit 02
Fm ii unit 02
Sunil Kumar
 
Wcm nba qa 19
Wcm nba qa 19Wcm nba qa 19
Wcm nba qa 19
BaidyanathPrajapati
 
Unit 5 Cash mgt.pptx
Unit 5 Cash mgt.pptxUnit 5 Cash mgt.pptx
Unit 5 Cash mgt.pptx
AnshikaMaheshwari10
 
Amrutha menon cash management
Amrutha menon cash managementAmrutha menon cash management
Amrutha menon cash management
Amrutha Menon
 
Cash management
Cash managementCash management
Cash management
Hriday Bora
 
cash management.pptx
cash management.pptxcash management.pptx
cash management.pptx
Jumanul Haque
 
Managing cash level
Managing cash levelManaging cash level
Managing cash level
Dr.Francis Okereke
 
14685550 cash-management-presentation
14685550 cash-management-presentation14685550 cash-management-presentation
14685550 cash-management-presentation
Dr. Ravneet Kaur
 
Cash management
Cash managementCash management
Cash management
Vindraj Chopdekar
 
Cash management
Cash managementCash management
Cash management
Kumar Gaurav
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
Gorani & Associates
 
International cash management
International cash managementInternational cash management
International cash management
Noman Ali
 
Cash and Receivable Management.pptx
Cash and Receivable Management.pptxCash and Receivable Management.pptx
Cash and Receivable Management.pptx
AbhayKhane1
 
workingcapitalmgt-090513064636-phpapp01.ppt
workingcapitalmgt-090513064636-phpapp01.pptworkingcapitalmgt-090513064636-phpapp01.ppt
workingcapitalmgt-090513064636-phpapp01.ppt
drluminajulier
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
Gorani & Associates
 

Similar to Cash Management (20)

ppt management.pptx cash management presentation
ppt management.pptx cash management presentationppt management.pptx cash management presentation
ppt management.pptx cash management presentation
 
ppt management cash.pptx cash management
ppt management cash.pptx cash managementppt management cash.pptx cash management
ppt management cash.pptx cash management
 
CASH MANAGEMENT.pptx cash management's h
CASH   MANAGEMENT.pptx cash management's hCASH   MANAGEMENT.pptx cash management's h
CASH MANAGEMENT.pptx cash management's h
 
Cash management
Cash managementCash management
Cash management
 
Managerial finance
Managerial financeManagerial finance
Managerial finance
 
Fm ii unit 02
Fm ii unit 02Fm ii unit 02
Fm ii unit 02
 
Wcm nba qa 19
Wcm nba qa 19Wcm nba qa 19
Wcm nba qa 19
 
Unit 5 Cash mgt.pptx
Unit 5 Cash mgt.pptxUnit 5 Cash mgt.pptx
Unit 5 Cash mgt.pptx
 
Amrutha menon cash management
Amrutha menon cash managementAmrutha menon cash management
Amrutha menon cash management
 
Cash management
Cash managementCash management
Cash management
 
cash management.pptx
cash management.pptxcash management.pptx
cash management.pptx
 
Managing cash level
Managing cash levelManaging cash level
Managing cash level
 
14685550 cash-management-presentation
14685550 cash-management-presentation14685550 cash-management-presentation
14685550 cash-management-presentation
 
Cash management
Cash managementCash management
Cash management
 
Cash management
Cash managementCash management
Cash management
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
 
International cash management
International cash managementInternational cash management
International cash management
 
Cash and Receivable Management.pptx
Cash and Receivable Management.pptxCash and Receivable Management.pptx
Cash and Receivable Management.pptx
 
workingcapitalmgt-090513064636-phpapp01.ppt
workingcapitalmgt-090513064636-phpapp01.pptworkingcapitalmgt-090513064636-phpapp01.ppt
workingcapitalmgt-090513064636-phpapp01.ppt
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
 

More from DevTech Finance

Bitcoin - The CryptoCurrency
Bitcoin - The CryptoCurrencyBitcoin - The CryptoCurrency
Bitcoin - The CryptoCurrency
DevTech Finance
 
Portfolio Management
Portfolio ManagementPortfolio Management
Portfolio Management
DevTech Finance
 
No Cost EMI - 0% Interest Loan
No Cost EMI - 0% Interest LoanNo Cost EMI - 0% Interest Loan
No Cost EMI - 0% Interest Loan
DevTech Finance
 
Health Insurance
Health InsuranceHealth Insurance
Health Insurance
DevTech Finance
 
Face Value, Book Value & Market Value
Face Value, Book Value & Market ValueFace Value, Book Value & Market Value
Face Value, Book Value & Market Value
DevTech Finance
 
Loan Moratorium Period.
Loan Moratorium Period.Loan Moratorium Period.
Loan Moratorium Period.
DevTech Finance
 
Hire Purchase
Hire PurchaseHire Purchase
Hire Purchase
DevTech Finance
 
Infrastructure Financing
Infrastructure FinancingInfrastructure Financing
Infrastructure Financing
DevTech Finance
 
Recovery Management In Banking
Recovery Management In BankingRecovery Management In Banking
Recovery Management In Banking
DevTech Finance
 
Board of Directors
Board of DirectorsBoard of Directors
Board of Directors
DevTech Finance
 
Inventory Management
Inventory ManagementInventory Management
Inventory Management
DevTech Finance
 
Money Market
Money MarketMoney Market
Money Market
DevTech Finance
 
Consortium Finance
Consortium FinanceConsortium Finance
Consortium Finance
DevTech Finance
 
Indian Banking System
Indian Banking SystemIndian Banking System
Indian Banking System
DevTech Finance
 
CRM Models
CRM ModelsCRM Models
CRM Models
DevTech Finance
 
Accounting Concepts & Conventions
Accounting Concepts & ConventionsAccounting Concepts & Conventions
Accounting Concepts & Conventions
DevTech Finance
 
NBFC
NBFCNBFC
NPCI
NPCINPCI
Credit Monitoring
Credit MonitoringCredit Monitoring
Credit Monitoring
DevTech Finance
 
Stewardship theory
Stewardship theoryStewardship theory
Stewardship theory
DevTech Finance
 

More from DevTech Finance (20)

Bitcoin - The CryptoCurrency
Bitcoin - The CryptoCurrencyBitcoin - The CryptoCurrency
Bitcoin - The CryptoCurrency
 
Portfolio Management
Portfolio ManagementPortfolio Management
Portfolio Management
 
No Cost EMI - 0% Interest Loan
No Cost EMI - 0% Interest LoanNo Cost EMI - 0% Interest Loan
No Cost EMI - 0% Interest Loan
 
Health Insurance
Health InsuranceHealth Insurance
Health Insurance
 
Face Value, Book Value & Market Value
Face Value, Book Value & Market ValueFace Value, Book Value & Market Value
Face Value, Book Value & Market Value
 
Loan Moratorium Period.
Loan Moratorium Period.Loan Moratorium Period.
Loan Moratorium Period.
 
Hire Purchase
Hire PurchaseHire Purchase
Hire Purchase
 
Infrastructure Financing
Infrastructure FinancingInfrastructure Financing
Infrastructure Financing
 
Recovery Management In Banking
Recovery Management In BankingRecovery Management In Banking
Recovery Management In Banking
 
Board of Directors
Board of DirectorsBoard of Directors
Board of Directors
 
Inventory Management
Inventory ManagementInventory Management
Inventory Management
 
Money Market
Money MarketMoney Market
Money Market
 
Consortium Finance
Consortium FinanceConsortium Finance
Consortium Finance
 
Indian Banking System
Indian Banking SystemIndian Banking System
Indian Banking System
 
CRM Models
CRM ModelsCRM Models
CRM Models
 
Accounting Concepts & Conventions
Accounting Concepts & ConventionsAccounting Concepts & Conventions
Accounting Concepts & Conventions
 
NBFC
NBFCNBFC
NBFC
 
NPCI
NPCINPCI
NPCI
 
Credit Monitoring
Credit MonitoringCredit Monitoring
Credit Monitoring
 
Stewardship theory
Stewardship theoryStewardship theory
Stewardship theory
 

Recently uploaded

RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
zuzanka
 
Contiguity Of Various Message Forms - Rupam Chandra.pptx
Contiguity Of Various Message Forms - Rupam Chandra.pptxContiguity Of Various Message Forms - Rupam Chandra.pptx
Contiguity Of Various Message Forms - Rupam Chandra.pptx
Kalna College
 
Observational Learning
Observational Learning Observational Learning
Observational Learning
sanamushtaq922
 
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
Nguyen Thanh Tu Collection
 
NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...
NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...
NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...
Payaamvohra1
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
TechSoup
 
skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)
Mohammad Al-Dhahabi
 
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxA Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
OH TEIK BIN
 
A Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two HeartsA Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two Hearts
Steve Thomason
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
RidwanHassanYusuf
 
The basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptxThe basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptx
heathfieldcps1
 
Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...
PsychoTech Services
 
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumPhilippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
MJDuyan
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
danielkiash986
 
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...
Nguyen Thanh Tu Collection
 
Standardized tool for Intelligence test.
Standardized tool for Intelligence test.Standardized tool for Intelligence test.
Standardized tool for Intelligence test.
deepaannamalai16
 
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.ppt
Level 3 NCEA - NZ: A  Nation In the Making 1872 - 1900 SML.pptLevel 3 NCEA - NZ: A  Nation In the Making 1872 - 1900 SML.ppt
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.ppt
Henry Hollis
 
How to Download & Install Module From the Odoo App Store in Odoo 17
How to Download & Install Module From the Odoo App Store in Odoo 17How to Download & Install Module From the Odoo App Store in Odoo 17
How to Download & Install Module From the Odoo App Store in Odoo 17
Celine George
 
BPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end examBPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end exam
sonukumargpnirsadhan
 
Skimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S EliotSkimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S Eliot
nitinpv4ai
 

Recently uploaded (20)

RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
 
Contiguity Of Various Message Forms - Rupam Chandra.pptx
Contiguity Of Various Message Forms - Rupam Chandra.pptxContiguity Of Various Message Forms - Rupam Chandra.pptx
Contiguity Of Various Message Forms - Rupam Chandra.pptx
 
Observational Learning
Observational Learning Observational Learning
Observational Learning
 
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
 
NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...
NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...
NIPER 2024 MEMORY BASED QUESTIONS.ANSWERS TO NIPER 2024 QUESTIONS.NIPER JEE 2...
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
 
skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)
 
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxA Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
 
A Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two HeartsA Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two Hearts
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
 
The basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptxThe basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptx
 
Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...
 
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumPhilippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
 
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 8 - CẢ NĂM - FRIENDS PLUS - NĂM HỌC 2023-2024 (B...
 
Standardized tool for Intelligence test.
Standardized tool for Intelligence test.Standardized tool for Intelligence test.
Standardized tool for Intelligence test.
 
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.ppt
Level 3 NCEA - NZ: A  Nation In the Making 1872 - 1900 SML.pptLevel 3 NCEA - NZ: A  Nation In the Making 1872 - 1900 SML.ppt
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.ppt
 
How to Download & Install Module From the Odoo App Store in Odoo 17
How to Download & Install Module From the Odoo App Store in Odoo 17How to Download & Install Module From the Odoo App Store in Odoo 17
How to Download & Install Module From the Odoo App Store in Odoo 17
 
BPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end examBPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end exam
 
Skimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S EliotSkimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S Eliot
 

Cash Management

  • 1.
  • 2. CASH MANAGEMENT • Cash Management refers to optimum utilization of cash to ensure liquidity and profitability of business. • It is thus concerned with the collection, disbursement and investment of cash in efficient manner. CASH COINS NOTES DEMAND DEPOSITS LIQUID ASSETS CHEQUES
  • 3. MOTIVES FOR HOLDING CASH • TRANSACTION MOTIVE – Cash is required in business to meet operational expenses like utility bills, salary and wages, travelling expenses, repair and maintenance, accounting expenses, taxes etc. • PRECAUTIONARY MOTIVE – Cash is required as provision to meet unexpected contingencies in shorter period of time. • SPECULATIVE MOTIVE- Cash should also be kept to grab profitable opportunities of investment or profit booking as and when the prices are low or favorable.
  • 4. OBJECTIVES OF CASH MANAGEMENT • Optimum cash balance • Prompt collection from debtor • Investment of excess cash to earn profitablity • Controlling cash inflow and outflow • Meeting payment schedule
  • 5. FUNCTIONS OF CASH MANAGEMENT 1. RECEIVABLES MANAGEMENT 2. INVENTORY MANAGEMENT 3. PAYABLES MANAGEMENT 4. SHORT TERM INVESTMENTS 5. FORECAST & PLANNING
  • 6. TOOLS FOR CASH CONTROL • CASH BUDGET - The Cash Budget is a budget prepared to estimate the cash inflows and outflows during a specific period of time in future. • CASH FLOW STATEMENT – The Cash Flow Statement is a financial statement that summarizes the cash inflows and outflows through three major activities (operating, investing and financing). • RATIO ANALYSIS – Liquidity ratios like current ratio, quick ratio and cash ratio measures the financial strength of company in terms cash and marketable securities available in the company to pay off short term obligations.
  • 7. THANK YOU FOR WATCHING