2 Introduction
As the word suggests, Cash Management refers to the optimum utilization of cash to ensure the right amount of liquidity and maximum profitability for an organization.
Money is the lifeline for any business and therefore every organization aims to ensure that there is adequate cash to meet the obligations while making sure that there are no idle funds. Cash management functions help businesses in achieving this goal.
On a broad level, Cash management functions include Collections, Receivable/Payable Management, Reconciliation of payments, and Cash Flow Forecasting.
Note:
The Cash Management module is currently only supported on Desktops and Landscape mode of Tablet devices.Functions of Cash Management:
This topics describes about the Functions of Cash Management, the following are:
- Cash Flow Forecasting
Cash flow forecast helps corporates in estimating the amount of money that will move in and move out of the business during a specific period like for a month, date, or for a particular week. Based on the forecast, businesses can plan their future investments and ensure that they have enough liquidity to meet their future payables. For more information, refer the Cash Flow Forecasting section in this user manual.
- Collections
It is a process of managing collection of physical instruments like cash and cheques. It not only saves the corporate’s time and resources but also provides them a clear and detailed view of their collection status across locations.