What are the Objectives of Cash Management?

[Suba]

Cash management has a very important and strategic role and is used as a determinant of short-term operational stability. Cash management not only discusses cash issues but also planning, controlling, and optimizing cash flow. As we know, cash is one of the most liquid types of assets, but cash management is often considered trivial and ignored so that it can have a negative impact on the sustainability of a business.

After we briefly discuss cash management in the financial structure of a business, the next question will arise, what exactly should be achieved from cash management?

 

[Springtime]

Cash management is important in business. You have to make sure there is no liquidity problem. You will get into financial problem with liquidity issue even you are making profit.

 

[kerryjoy]

Cash management should ensure liquidity, meet obligations, avoid shortages, and optimize cash for growth.

 

[Trush Jodie]

Cash flow is an essential part of a person's life and cash management helps in optimizing cash flow to make one never run out of cash.

 

[Starmix]

Doing it, there's avoidance of error and proper monitoring is at stake. If cash is it's not properly manage it may land to the wrong hands. There must be constant updates.

 

[Augusta]

Minimizing Financial Risk:
Reducing the risk of financial distress due to insufficient cash, such as by avoiding late payments, missed opportunities, or even insolvency.