What Is Corporate Cash Management?

"Cash is king" has always been regarded as the central concept of corporate fund management. The level of cash flow management of an enterprise is often the key to determining its survival. In the face of increasingly fierce market competition, the living environment faced by enterprises is complex and changeable. Only by improving the management level of the company's cash flow can we rationally control the operating risks and improve the efficiency of the overall capital utilization of the enterprise, thereby continuously accelerating the development of the enterprise .

Corporate cash management

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"Cash is king" has always been regarded as the central concept of corporate fund management. enterprise

Enterprises are well-known for their profitability. At present, some companies deliberately pursue high yields and high profits. So often there is such a wrong idea that

Cash Flow refers to the amount of cash inflows and outflows from a company over a period of time. Companies selling goods, providing services, or selling

Planning cash flow is mainly through the use of cash budget means and combined with the company's previous experience to determine a reasonable cash budget limit and the best cash holdings. If the company can accurately predict cash flow, it can ensure sufficient liquidity. The cash flow forecast of an enterprise can be divided into short-term, medium-term and long-term forecasts according to the length of time. Generally, the longer the period, the worse the accuracy of the forecast. In the end, what kind of cash flow prediction method to choose depends on the overall development strategy and actual requirements of the enterprise. At the same time, the company's cash flow forecast can also be based on the inflow and outflow of cash to infer a reasonable cash stock.

Controlling cash flow is the internal control over corporate cash flow. The control of the company's cash flow is based on the correct planning, which mainly includes the centralized control of the company's cash flow and the control of receipts and payments. The centralized management of cash will help corporate fund managers better understand the overall situation of corporate funds, and quickly and effectively control this part of cash flow in a wider range, so as to achieve the best state of the preservation and use of these cash.