Cash Management is a planning, control and optimization of cash inflows and outflows of a business. All businesses use cash to operate, pay bills, invest, as well as expand. Lack of cash management will result into shortages, cost of borrowing money, and late payments. The management of cash is the ability to predict cash requirements, receive money earlier, regulate expenditure, and utilize such technologies as online banking, automation, and virtual bank accounts. Finance partners and banks provide business with cash management services to enhance liquidity. Finally, cash management is important in terms of having money where required when needed and not putting a firm in a position where it cannot operate.
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