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

In business operations, 'cash management' refers to the collection, handling, and usage of cash. A business manager might outline, 'Effective cash management ensures we have sufficient funds for daily operations and short-term investments.'

Practice Scenarios

Business

Scenario:

While our sales have been strong, it seems we have some discrepancies in our financials. It's vital we maintain a healthy cash flow.

Response:

Indeed, effective cash management will be key here. We should prioritize maintaining ample cash reserves to cover our operational expenditures.

Startup

Scenario:

We're burning cash faster than we're making it. This could become problematic if it continues unabated.

Response:

I agree. Prioritizing cash management should be our top action item. It's essential to have effective strategies to balance our cash inflows and outflows.