Working Capital Management

Working Capital Management (WMC)

Cash Management -1

Corporate cash management is perhaps the most critical aspect of working capital management as expressed in an old saying. The thing is finest when the need is urgent. Efficient cash management requires proper cash planning, management of receipts and disbursement and an efficient control and review mechanism. In Cash Management we intend to discuss in some details cash forecasting under uncertainty and decision-making models regarding the temporary investment of cash. We will also briefly review current practices of management of cash. Agentswebworld is nice way to handle agents website management.

CASH FORECASTING UNDER UNCERTAINTY

The worst time to raise cash is when you need it most. The company that cannot predict and plan its short-term cash flows simply does not have a handle on reality. Smart cash managers have learned to forecast cash flows for this reason.

The cash forecast is the estimate of the flows in and out of the firm’s cash account over a particular period of time. The cash flow forecast can cover a short time period (e.g. quarter, month, week or day), an annual accounting period or operating cycle or longer period of time. Forecasts for different time spans have different uses. For example, the long-range cash projections may cover periods ranging from three to five years and is useful in planning business growth, investment in projects, and introduction of new products. We will talk more in next post.

 

Ref: agents website, insurance software, insurance crm

 

Advertisements

August 27, 2008 - Posted by | Business Flow, Capital, Credit Analysis, Current Assets, Working Capital, Working Capital Management | , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: