cash management
Controlling liquid funds
Cash management is the practice of handling an organization's money—monitoring inflows and outflows, maintaining liquidity, and optimizing how funds are held or invested short-term.
Businesses use cash management to ensure they can meet obligations while not letting money sit idle: The company's cash management strategy keeps enough on hand for payroll while investing the rest in money market funds.
Assets minus current liabilities
- fundsAvailable financial resources
- currencyMedium of exchange
- reservesResources held back
- current assetsResources convertible within a year
float · money market · credit lines · liquid assets · receivables · payables · bank balances · available funds
Estimating future conditions
- allocationDistribution of shares
- planningArranging for future events
- expensesMoney spent on things
- revenueBusiness income total
income · cost control · fiscal discipline · expenditure · zero-based budgeting · envelope system · ledger · balance
Resources held back
- emergency fundReserve for unexpected expenses
- retained earningsProfits kept by company
- rainy day fundMoney saved for emergencies
- contingency fundReserved money for unforeseen expenses
accumulation · set-aside · surplus · nest egg · war chest · endowment · provision · sinking fund
Self-operating system design
- optimizationMaximizing efficiency or performance
- streamliningMaking more aerodynamic or efficient
- process improvementEnhancing operational efficiency systematically
- centralizationUnifying control in one place
netting · reconciliation · electronic payments · dashboards · fintech · batch processing · workflow · cost reduction
Pooled short-term debt investments
- certificates of depositFixed-term bank instruments
- returnsProfits from investments
- interest incomeMoney earned from loans
- investment policyGuidelines for capital allocation
laddering · surplus funds · capital preservation · diversification
working capital
Assets minus current liabilities
current assets · float · money market · credit lines · liquid assets · receivables · payables · bank balances · available funds
forecasting
Estimating future conditions
- allocationDistribution of shares
- planningArranging for future events
- expensesMoney spent on things
revenue · income · cost control · fiscal discipline · expenditure · zero-based budgeting · envelope system · ledger · balance · spreadsheet
reserves
Resources held back
- emergency fundReserve for unexpected expenses
- retained earningsProfits kept by company
- rainy day fundMoney saved for emergencies
contingency fund · accumulation · set-aside · surplus · nest egg · war chest · endowment · provision · sinking fund · escrow
automation
Self-operating system design
- optimizationMaximizing efficiency or performance
- streamliningMaking more aerodynamic or efficient
- process improvementEnhancing operational efficiency systematically
centralization · netting · reconciliation · electronic payments · dashboards · fintech · batch processing · workflow · cost reduction
money market funds
Pooled short-term debt investments
- certificates of depositFixed-term bank instruments
- returnsProfits from investments
- interest incomeMoney earned from loans
investment policy · laddering · surplus funds · capital preservation · diversification
- frugalityfrugality, thrift, frugal, penny-pinching, economize
- public financepublic debt, budget deficit, tax revenue, budgets, expenditure
- corporate bankingcorporate finance, corporate loans, debt financing, credit lines, letters of credit
- securities operationsclearing, settlement, matching, execution, back office
- financebank, CFO, banks, controller, finance
- Banking servicesloans, mortgages, credit cards, savings accounts, checking accounts
cash managementretirement planning
Preparing for post-career finances
growth investing · estate planning · strategic investment · wealth accumulation · wealth building
cash managementprivate equity
Capital for unlisted companies
infrastructure investment · real estate investment · venture capital · art collection · capital expenditure
cash managementfinancial mismanagement
Improper handling of funds
reckless spending · cash burn · profligacy · liquidity crisis · squandering
cash, management, cashed, cashing, cashes, cashless, cashier, manage, manages