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Discussion Board

In the AIU library I located an article written in 1977 that discusses financial management. It

discusses the importance of planning in many aspects of a business to include financial records,

budgets, and cash flow. Fifteen firms were studied by advanced business administration

students. These students found that all fifteen firms had cash flow problems undoubtedly

stemming from the lack of proper financial records which also contributed to making budgeting

nearly impossible. Improper record keeping is paramount to good financial management,

without the documentation of sales, profits or losses a company cannot forecast downward trends

or its future financial position. (Chaney, Henry & Grotke 1977) The article also discusses the

four major elements of cash management being; forecasting cash, managing cash flows,

investing surplus and banking relations. (Chaney, Henry & Grotke 1977) It continues on to

illustrate budgets, proper accounting, banking relationships, and has a comprehensive cash

management planning model which I found extremely helpful as well. My comment to the

authors; I was very impressed with the amount of information in such a short article. The way

the ideas were formed and arranged made it flow evenly and was an easy and comprehensible

read.
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References

Chaney, J., Henry, C. & Grotke, L. (3 January 1977) Cash management and planning for the

small businessman. American Journal of Small Business, Volume 1 Number 3,