Cash Management Case Study

The article chosen is related to Accounting and Finance, and covers the topic of cash management as well as strategic planning. It is a peer reviewed journal meaning the assessment of work by others in the same field of work to then be judged, whether correct knowledge is covered. The contents of the article ‘Integration of Cash Management’ will be reviewed, evaluating the background of the topic covered, aims of the article and questions that is either raised or answered. ‘Integration of Cash Management’ will also be criticised in terms of own views. “Cash management embraces the whole spectrum of business activities from long-run strategic planning to day-day operations.” (Chastain, 1986) Is what ‘Integration and cash management’ states

Discusses long-term strategic planning on cash flows so that a model can be presented including the financial position of the company on cash basis showing financial statements. Article helps to explain that Strategic planning offers organisational guidelines that establish cash flows after answering many questions such as are we going to manufacture or buy components from another company? How large does the factory need to be to meet demands? Proportions of capital that is from shareholders, borrowed or own? The article continues to say that planning when kept-up-to date and ‘what if’ scenarios are covered will make it easier for dangers to be recognised and plans adjusted to achieve alternative and desirable plans to meet the new variables so that many companies can prevent shortfalls in cash flows or allow for better access to external financing to avoid the risks of restructuring or bankruptcy. Furthermore, also goes on to explain that management should improve organisational efficiency, effectiveness and overall enhance the planning and control of the business. Through this article questions are answered where it is stated that many methods are used to prepare daily cash forecasts with the help of

Moreover, by doing what was asked of me and reviewing the article I have established that the key arguments of the article is the importance of long-term strategies and planning helped by the use of cash flow forecasts and budgeting. The article also explains different methods used for forecasting whilst explaining how to use some of the methods or why they are used together such as the percentage of sales with linear regression and how they help with cash flow forecasting. Generally, the article is the authors own view on cash management and its significance with some who agreed with his knowledge and reasoning’s, though there will be a percentage of readers that either partly or do not agree due to their own views and