What is the Purpose of Cash Management?

[Suba]

Cash is the most liquid asset compared to other assets, so it is placed at the top of the balance sheet. Regarding cash, there is a specific discipline known as cash management. This branch of science refers to the methods, systems, and procedures for managing cash and ensuring sufficient funds are available to run a business or meet obligations/debts.

If cash is not managed and regulated properly, the business will certainly be hampered or even stalled. So, what do you think is the purpose of cash management?

 

[Augusta]

it is to effectively manage cash inflows and outflows to maintain liquidity, financial stability, and strategic flexibility.