Cash management is the task of managing the cash flow in the enterprise. This can be accomplished with the help of an integrated system that tracks all your payables and outstanding receivables balances, and provides you with a net cash flow. The task of managing cash can be broken down into the following broad areas:
Managing information of financial institutions that you do business with
Integrating with external financial institutions to make and receive payments
Reconciling payments and receipts from within your financial system
Projecting cash position with a cash flow
There are multiple methods to manage these tasks. These tasks are managed sometimes with the help of your financial institutions' web presence, but for a large enterprise the capability to manage should be within its control. This is ideally provided by a financial system that the enterprise uses to capture, manage, and track its own financial and operational transactions.
In this chapter, we will...