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Cash_Management

Cash management is a crucial treasury function that ensures an organization has sufficient cash for expenses, manages financial risks, and invests surplus funds. The treasury department is responsible for cash flow forecasting, managing banking needs, and advising on funding strategies while also handling pension obligations and foreign exchange risks. Additionally, the document outlines ten cash handling procedures to maintain security and accuracy in cash management.

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ponace1964
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Cash_Management

Cash management is a crucial treasury function that ensures an organization has sufficient cash for expenses, manages financial risks, and invests surplus funds. The treasury department is responsible for cash flow forecasting, managing banking needs, and advising on funding strategies while also handling pension obligations and foreign exchange risks. Additionally, the document outlines ten cash handling procedures to maintain security and accuracy in cash management.

Uploaded by

ponace1964
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cash Management

Cash management is a vital activity of the treasury function. It ensures the


organization always has enough cash to meet expenses, seeks funding for
deficits, and invests surplus

Treasury Department
The treasury function manages the money and financial risks of an
organisation.

Activities of Treasury Department

Ensuring the organisation has enough cash to meet operating


requirements and financing obligations.

Identifies and executes opportunities to invest excess cash.

Identifies and manages risks involved in the cash flow and funding
of the organisation.

forecasting cash flow positions, related borrowing needs and funds


available for investment.

Manages the organisation’s banking requirements.

Advises on long-term strategic funding requirements and


investments.

Manages pension obligations and insurance requirements.

Manages foreign exchange exposure and risks, such as ensuring


sufficient foreign exchange for import/export requirements and
minimising the negative impact of forex movements.

Economic Cycle

Stages of an Economic Cycle

Cash Management 1
Effects

Differences in Private and Public Sector Investment

Cash Management 2
10 Cash Handling Procedures

Receive cash in the post

Date-stamp post and keep in a secure room

Ensure two responsible people open the post

Record cash receipts immediately

Ensure segregation of duties

Ensure prompt banking

Reconcile cash book to banking records

Investigate any differences between cash and banking records

Arrange random checks

Ensure documentation of each step

Cash Management 3

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