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Float Management

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What do we mean by float management? Explain and discuss why float management is important and what does it call for?

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This solution discusses the term float management.

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Definition of Float:
Float is the difference between bank cash and book cash, represents the net effect of checks in the process of collection.

Float Management Defined:

Float management involves controlling the collection and disbursement of cash. The objective in cash collection is to reduce the lag between time customer pays and the time checks clear and the objective of cash disbursement is to slow down payments, increase time when checks are written, and received. In ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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