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Cash management and credit management techniques

I need with the following questions:

How do you evaluate the cost and benefits of cash management techniques to maximize organizational value. What is the cost of float to an organization?

How do you apply the cost of trade credit techniques to assess the cost of trade credit for an organization. What do discounts really cost an organization?

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I need with the following questions:

How do you evaluate the cost and benefits of cash management techniques to maximize organizational value. What is the cost of float to an organization?

A firm should hold an optimum balance of cash, and invest any temporary excess amount in short-term (marketable) securities. In choosing these securities, the firm must keep in mind safety, maturity and marketability of its investment.
Steps of Cash Management
Cash planning
Managing the cash flows
Optimum cash level
Investing surplus cash

Thus strategic benefits of cash management techniques are:
? Efficient managing cash flows into and out of the firm
? Efficient managing cash flows within the firm,
? Financing deficit or investing surplus cash and thus, controlling cash balance at a point of time. It is an important function in practice because it is difficult to predict cash flows and there is hardly any synchronization between inflows and outflows.

Managing float

Float is the delay between the time when a cheque is issued by a company and the time when it is ...

Solution Summary

This explains the cost and benefits of cash management and credit management techniques

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