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Cash Management

Introduction to Cash Management

What money is coming in to your business? Do you have enough money in your accounts to cover your business expenses? If you have cash left over, what's the best way to save or invest it so it will both grow and be available when you need it? How can you guarantee a positive cash flow over time, so you can meet financial obligations even during slow or lean periods?

The answers to questions like these greatly influence whether your business will succeed and thrive over the long term. They also affect your time, energy, and productivity as a business owner. Spend too much time on daily tasks associated with cash management, and you might not spend enough on other crucial aspects of running your business that need your attention. Unfortunately, the cash flow process and making it work are mysteries to many business owners. Cash management tends to get more complicated as your business grows, making it difficult to achieve the right balance.

Demystifying Cash Management

Cash management is the backbone of your business. As a business owner, you need to stay on top of what money is coming in versus what's going out to pay your operating expenses. You need to make your money accessible, have the ability to control it, and of course you'd like to see it grow. You want to understand and oversee cash management, but keep yourself from micromanaging the process to the detriment of other critical business objectives.

Above all, remember that the best cash management solution for your business is the one that ties together the various financial elements of your business and aligns with your business priorities. At first glance, it might appear that cash management concerns only payments and receivables. However, delve a bit deeper and you will realize that sound cash management is critical to your business on every level--and that it affects your ability to have access to the capital and credit you may need to lean on as your business grows

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