INTRODUCTION

Cash management
Cash management refers to a broad area of finance involving the collection, handling,

and usage of cash. It involves assessing market liquidity, cash flow, and investments.

The cash management is concerned with the collection, disbursement and the management of

cash in such a way that firm’s liquidity is maintained. In other words, it is concerned with

managing the cash flow within and outside the firm and making decisions with respect to the

investment of surplus cash or raising the cash from outside for financing the deficit.

Cash management is the process of collecting and managing cash flows. Cash management can

be important for both individuals and companies. In business, it is a key component of a

company's financial stability  For individuals, cash is also essential for financial stability while

also usually considered as part of a total wealth portfolio.

Individuals and businesses have a wide range of offerings available across the financial

marketplace to help with all types of cash management needs. Banks are typically a primary

financial service provider for the custody of cash assets. There are also many different cash

management solutions for individuals and businesses seeking to obtain the best return on cash

assets or the most efficient use of cash comprehensively.

Cash management, also known as treasury management, is the process that involves collecting

and managing cash flows from the operating, investing, and financing activities of a company. In

business, it is a key aspect of an organization’s financial stability.

In an organization, chief financial officers, business managers, and corporate treasurers are

usually the main individuals responsible for overall cash management strategies, stability

analysis, and other cash-related responsibilities. However, many organizations may outsource

part or all of their cash management responsibilities to some service providers.

Cash management is the term used to define all of the activities related to collecting, centralising

and disbursing cash within a company. The main aim is to maximise the availability of cash for

investment or paying unexpected costs, as well as to ensure financial stability and solvency.

Definition: Cash Management refers to the collection, handling, control and investment of the

organizational cash and cash equivalents, to ensure optimum utilization of the firm’s liquid

resources. Money is the lifeline of the business, and therefore it is essential to maintain a sound

cash flow position in the organization.