What is the scope & purpose of Cash Management?
What is the scope & purpose of Cash Management?
CA CS CIMA Prakash Somani (Landmark Group) (23512 Points)
29 January 2011
2 Replies
SANYAM ARORA
(“It's hard to beat a person who never gi)
(20173 Points)
Replied 29 January 2011
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
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 29 January 2011
To have Funds immediately in Your Bank account as soon as the cheques are deposited into Your account without waiting for clearance.
Recent Topics
- Income Tax Rectification-TDS not claimed in ITR
- Gst Amendment HSN summary
- Unable to get some value eligible for claim in old
- Tax payment adjustment
- Accounting in Fintech companies
- Section 80DD Deduction Filing Error
- Which Form I have to fill - ITR1 or ITR2
- INTEREST EARNING IN USD AND JPY FCNR REPORTING IN
- ONLING FILLING ITR2 FOR PENSIONOR
- Sold Shares and purchased Open plot
Related Threads
Trending Online Classes
CAclubindia
