cash-management

Vocabulary Word

Definition

'Cash Management' is how businesses control and manage their money to ensure they always have enough to meet their needs and goals. This includes collecting payments, investing surplus cash, and paying expenses.

Examples in Different Contexts

For retail banking, 'cash management' services help businesses manage their cash flow more effectively. A bank representative might offer, 'Our cash management services include online payment processing and automated payroll systems.'

Practice Scenarios

Scenario:

Our current accounting software lacks real-time tracking capabilities, hindering our ability to manage our finances effectively.

Response:

Absolutely, upgrading to a more advanced cash management system could significantly enhance our ability to track and manage our cash flow.

Accounting

Scenario:

We've noticed a delay in customer payments, affecting our liquidity. We need to review and rectify these discrepancies to improve our financial health.

Response:

Correct, we should streamline our cash management process to keep tabs on all account receivables to ensure smooth cash flow.