Cash Management

Although several areas of business management are crucial for growth and success, none may be of more importance than cash management.

The non-financial implications of poor cash management can affect much more than the financial performance of your business. Acute cash management provides a safeguard with adequate levels of cash level in order to meet operating and investment goals.

Contrarily, an inadequate cash management structure can lead to business failure. Frequently, unstructured cash management within companies has led small business managers need to liquidate or reorganize under chapter 7 or 11 of the bankruptcy code.

Managers frequently find themselves surfing on the waves of growth and illiquidity. Unlike larger firms, small businesses have small-scale, raw workforce and depend on less stable contracts.

Concentration on growth influences cash management systems by increasing net working capital requirements

Generally, businesses develop systems to hold a vague representation of receivables to payables. Such a limited structure hinders management the ability to provide valuable input based on dependable knowledge and data needed to make strategic decisions and accurate understanding of liquidity.

Veritas Management Group adopts the following framework for best structured cash management system.