Cash management is an important part of any business’ efforts to thrive financially.
Cash management is a broad term that applies to the collecting, managing and investing of cash. Think of it as the balance between the money a business takes in and the money it pays out. In the long run, businesses need more coming in.
When done well, cash management enables businesses to avoid insolvency and handle unexpected costs. It also reduces the time bills spend in accounts receivables, and finds the best short-term investments. Cash management can entail hiring debt collectors, or be as simple as locking cash in a box so it can’t be stolen.
Small businesses rely more on efficient cash management because they typically lack access to more favorable lines of credit. Many times they face large start-up costs that require having cash readily available.
Those who handle a company’s cash management must demonstrate a high level of financial literacy. Typically, they assume corporate treasury or business manager positions that carry great responsibility. New techniques and technology are regularly developed, so cash managers must be able to adapt quickly.

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