Knowing the current revenue situation will affect the cash flow, whether the budget needs tightening or there is enough cash for investments. The statement will show if cash inflow was from an account receivable and if cash was released to pay for account payables, investments, and operations. Moreover, regular reviews of the cash flow statement will highlight a possible shortfall in cash. Creating realistic cash flow budgetįorecasting is the first step in attaining a workable cash flow budget. Moreover, regular and detailed bank reconciliation is the best way to expose fraudulent activities.

Prompt reconciliation of bank accounts will give clues on how to avoid delays in collection. Here is a list of focus areas to properly manage cash.

Cash Management needs integration into businesses’ regular standard procedures.