Overview Of Cash Management Mba 503

1696 words - 7 pages

Cash management involves controlling the cash flow (cash receipts in and cash payments out) of a firm to minimize nonearning cash balances (Block-Hirt, 2004). According to A Handbook of Management Techniques (2008 ) the purpose of managing cash is to ensure that there is enough cash and working capital for fluctuating needs without tying up funds needed elsewhere or relying too heavily on short-term financing.Cash management requires continuous monitoring and must involve immediate and responsive decision making by managers. Managers must also know when to supplement cash flow through short-term financing. In order manage the cash, managers must know the various techniques of cash flow, and managers should also know the various methods of short-term financing available. This paper will present an overview, through a comparison contrast format of these management tools to allow the financial manager to be well-versed in the most effective ways to manage the cash of a firm and to determine the most efficient ways to obtain additional cash as needed.Cash Management Techniques:Financial managers are expected to maximize profit for a firm through effective cash management strategies which will ensure that a firm is able to continue its day to day operations to satisfy both short-term debt and upcoming operational expenses. Some of the cash management techniques available to managers are: float, improving collections, extending disbursements, conducting a cost-benefit analysis, using electronic funds transfer, international cash management, marketable securities, management of accounts receivable, and inventory management. Each of these techniques will be briefly described in this overview.Float occurs when there are delays in mailing, processing and clearing checks in the banking system which cause a difference in what is shown on the books in comparison to the true bank balance. Float was a strategy used more in the past, before the advancement of electronic banking through technology and before legislative action was taken to allow faster processing. However, float still occurs and is the reason why some financial statements might show a negative cash balance on the books.Improving collections is a strategy for expediting the cash in for a firm. This can be done through the use of a lockbox system which allows all checks to be processed through a central processing location which processes the transaction and makes the funds available to the firm immediately. The main disadvantage to this method is cost.Extending disbursements refers to the delaying of cash out, such as when a firm will not make a payment until after it is due, which allows the firm to hold its cash for as long as possible. A firm must be careful not to incur late fees if they extend the payments too long.A cost-benefit analysis must be conducted before implementing one of the above mentioned methods, as they can be quite costly. If a firm has to pay more to manage the lockbox...

Find Another Essay On Overview of Cash Management MBA 503

Overview of the Role Theory of Management

770 words - 4 pages Overview of the Role Theory of Management The Role Theory of management is based on individuals within the organization adapting to the formal and informal roles that come with their position. According to CSU-global Module 3 (2013), “Roles shape the way we see ourselves and help to define the behaviors we exhibit and don’t exhibit within organizations” (p.5). These roles are defined by the position held by the individual and how they

Contingency Theory: An Overview of Its Use In Management

887 words - 4 pages Contingency Theory: An Overview of Its Use in Management Contingency theory is one of the many theories that help to shape managerial practice, define the way that managers make decisions, and form solutions to problems. The intent of this paper will be to define what contingency theory is, identify the theorists that have helped shape the theory describe what areas of business and management it is used in. The paper will also set out to

An Essay On The Force of Globalization, Modern Management Concepts and 21st Century Manager - MBA - essay

1704 words - 7 pages An Essay On The Force of Globalization, Modern Management Concepts and 21st Century Manager Submitted by: Submitted to: Manish Man Shrestha Mr. Sohan Babu Khatri MBA Spring 2017 Ace Institute of Management 2017-08-26 The Force of Globalization, Modern Management Concepts and 21st Century Manager Globalization is not a new phenomenon because it existed long time ago when countries traded with each other centuries ago. And if it is not new, then

Financial Markets - IB Overview Training - College of William & Mary - Financial Management

2540 words - 11 pages Distribution of Global Markets Barclays- US, Europe, Asia Pacific Market Cap – share price x # of shares = equity market value of company All stocks added up gives us the stock market cap US- largest Market Cap UK – largest GDP US – IBD Cash Fee Pool Bigger deals, bigger fees Stock capitalization of German market is not entirely reflective of all companies due to private companies Private companies – do not have to publish audited accounts

Overview of Performance Management

2593 words - 10 pages Performance Management: An ongoing communication process that involves both the performance manager and the employee in:* identifying and describing essential job functions and relating them to the mission and goals of the organization* developing realistic and appropriate performance standards* giving and receiving feedback about performance* writing and communicating constructive performance appraisals* planning education and development

Synopsis of chapter 1-3 of the framework of marketing management - Pace MBA - Synopsis

1250 words - 5 pages Synopsis of: 1,2,3 chapters of The Framework for marketing management Purpose: The purpose of this synopsis is to provide an understanding of the marketing concepts explained in the 1-3 chapters of The Framework of Marketing Management. This review highlights the marketing management concepts in the various chapters. Synopsis of the Chapters: In the first chapter the authors explain the basic terms and concepts of marketing and they define

Virgin, an overview of the management and motivation styles

884 words - 4 pages already put so much effort into writing a report which is in itself coherent and free of waffle.IntroductionThis report has been based on Virgin, Virgin was chosen due to there having been a lot of controversy in the media over the owner, Sir Richard Branson and his management style as it isvery autocratic, having an autocratic management style usually means that employees are de motivated yet within Virgin employees are motivated and content. This

Just in Time. 4 page overview of the principles of just-in-time production operations management

1604 words - 6 pages JIT (just-in-time)Many organizations throughout the world use JIT management principles in their everyday operations. It was first developed in Japan in the late 1950s by a former shop manager and later on vice president of Toyota. In its simplest form, JIT program is directed towards ensuring that the right quantities are produced or purchased at the right time, and that there is no waste. Waste is defined as anything that doesn't add value to

"What skills does a manager need" This essay gives a general overview of the different skills managers require at the different levels of management

1662 words - 7 pages Essay Topic: 'What skills does a manger need?'A managers job is complex and multidimensional, certain skills are required in order to effectively run an organisation. As used here management is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people (Robbins, S., Bergman, R, Stagg, J. & Coulter, M. 2006). A manager is someone who works with and through other people by

Is an MBA Necessary for a Successful Career?

870 words - 4 pages (roi) is dropping significantly at the same time. (Byrne, 2012) Although obtaining an MBA is becoming more expensive, MBA degree is still vital in today’s competitive world because not only it can potentially improve one’s management skills it can also boost confidence which cannot be expressed in the form of currency. MBA serves as a stepping stone to a successful career. Experience Versus MBA Degree Some people believe that having a good job

Time Value Of Money

1722 words - 7 pages Business Source Complete database. Block, S., & Hirt G., (2005). Foundations of financial management (11th ed.). New York: McGraw-Hill. Retrieved February 19, 2008, from University of Phoenix, Week 1 rEsource, MBA/503 Introduction to Finance and Accounting Web site. Eschenbach, T., & Cohen, R. (2006, September). Which Interest Rate for Evaluating Projects?. Engineering Management Journal, 18(3), 11-19. Retrieved March 15, 2008, from Academic

Similar Essays

The Concept Of Yield To Maturity Mba 503

817 words - 3 pages Internal Rate of Return, in financial management, the yield to maturity is the periodic interest rate that equates the present value of the expected future cash flows, both coupons and maturity value, to be received on the bond to the initial investment in the bond, which is its current price. (Wikipedia, n.d.).An investor would use the bond's coupon rate, price, par value and term to maturity to determine the yield to maturity, or internal rate of

Economic Concepts Worksheet Dys Singa University Of Phoenix Mba 503: Introduction To Finance And Accounting

918 words - 4 pages changing employers and settled for the opportunity to continue to work in an environment I enjoy, anticipating a better salary in the future.Societal wants outweighs its available resources, the cost of the resource you get is the value of that which is sacrificed to obtain it. "Opportunity cost is the amount of other products that must be forgone or sacrificed to obtain 1 unit of a specific good" (McConnell & Brue, 2004).ReferencesMcConnell, C. R. and Brue, S. L. (2004). Economics: Principles, problems and policies,16e. Retrieved January 28, 2004, from University of Phoenix, Week TworEsource. MBA 503: Introduction to Finance and Accounting Web site.

Cost Descriptors Dys Singa University Of Phoenix Mba 503: Introduction To Finance And Accounting

1428 words - 6 pages performance against the industry norms to attain financial stability. Fixed overhead costs and sunk cost are irrelevant as they have no bearing on the decision making process.ReferencesBlock S. B., and Hirt G. A.. (2005). Foundation of Financial Management, 11e.Retrieved April 17, 2008, from University of Phoenix, Week Two, rEsource.MBA 503: Introduction to Finance and Accounting Web site.McConnell, C. R. and Brue, S. L. (2004). Economics: Principles, problems and policies,16e. Retrieved January 28, 2004, from University of Phoenix, Week TworEsource. MBA 503: Introduction to Finance and Accounting Web site.

Overview Of Management Essay

1550 words - 6 pages authority to direct others. All organizations, regardless of their size, have managers whose responsibilities are to ensure the successful daily operations of the company. Kudler Fine Foods is an example of an organization which is made up of different departments who work together to ensure the success of the organization.This paper is designed to analyze Kudler Fine Foods and identify the primary functions of management, describing who is responsible