What is the scope & purpose of Cash Management?

CASH IS FIRST OF ALL A VERY IMPORATNT ASSET FOR A FIRM.IT HELPS THE FIRM TO MEET THEIR IMMEDIATE OBLIGATIONS SUCH AS PAYMENT OF SALARY,RENT,WAGES,ETC.HOLDING CASH IS IMPORTANT FOR THE FIRM BUT HOLDING EXXCESSIVE CASH CAUSES LOSS OF INTERST TO THE FIRM.SO WHEN FIRM HAS EXCCESSIVE CASH,IT SHOULD INVEST IT IN MARKETABLE SECURITIES AND EARN INEREST.BUT BY INVESTING THE FIRM HAS TO MEET FIXED TRANSACTION COST.

SO CASH MANAGEMENT IS A VERY IMPORATNT ASSPECT IN FINANCIAL MANAGEMENT.ALL THE FIRMS MUST SEE THEIR TOTAL CASH REQUIREMENT AND THEREAFTER INVEST THEIR MONEY KEEPING IN MIND PROSPECTS OF THE COMPANY.

SO IN SHORT CASH MANAGEMENT REFERS TO MANAGEMENT OF CASH IN THE BEST POSSIBLE WAY...!!!!

THANKS

To have Funds immediately in Your Bank account as soon as the cheques are deposited into Your account without waiting for clearance.