Cash Management

Cash Management is having the right amount of money in the right place at the right time to meet company`s obligations; secondly meeting these obligations in the most cost-effective way.

Our comprehensive range of cash management products includes:

Payables

Digital, innovative solutions: Our understanding of the payment landscape across Malawi, combined with digital and physical payment solutions are some of the innovative solutions we offer to meet your unique needs.

Receivables

Collect money easily within Malawi: Our experience in Malawi, coupled with our extensive physical footprint and leading collections capability (Electronic Bill Presentment, Receipt Referencing and Direct Debits to name a few), helps you to navigate the challenges associated with the collecting of money by ensuring that funds are received predictably and reliably, with value passed to accounts quickly and securely.

Account Services

Expert account management: Vacorn HR is a trusted advisor to local and national clients. Our cash management solutions enable you to view and track capital outflows in real-time to reduce trapped cash and administer your businesses centrally.

Liquidity Management

Effective liquidity management: We offer a range of structured solutions to our local and national clients. Participating account balances can be netted, pooled or swept to provide an overall group position view.

What Is Cash Management?

Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company’s financial stability. For individuals, cash is also essential for financial stability while also usually considered as part of a total wealth portfolio.

Individuals and businesses have a wide range of offerings available across the financial marketplace to help with all types of cash management needs. Banks are typically a primary financial service provider for the custody of cash assets. There are also many different cash management solutions for individuals and businesses seeking to obtain the best return on cash assets or the most efficient use of cash comprehensively.

Understanding Cash Management

Cash is the primary asset individuals and companies use to pay their obligations on a regular basis. In business, companies have a multitude of cash inflows and outflows that must be prudently managed in order to meet payment obligations, plan for future payments, and maintain adequate business stability. For individuals, maintaining cash balances while also earning a return on idle cash are usually top concerns.

In corporate cash management, also often known as treasury management, business managers, corporate treasurers, and chief financial officers are typically the main individuals responsible for overall cash management strategies, cash related responsibilities, and stability analysis. Many companies may outsource part or all of their cash management responsibilities to different service providers. Regardless, there are several key metrics that are monitored and analyzed by cash management executives on a daily, monthly, quarterly, and annual basis.

The cash flow statement is a central component of corporate cash flow management. While it is often transparently reported to stakeholders on a quarterly basis, parts of it are usually maintained and tracked internally on a daily basis. The cash flow statement comprehensively records all of a business’s cash flows. It includes cash received from accounts receivable, cash paid for accounts payable, cash paid for investing, and cash paid for financing. The bottom line of the cash flow statement reports how much cash a company has readily available.

KEY TAKEAWAYS

  • Cash management is the process of managing cash inflows and outflows.
  • There are many cash management considerations and solutions available in the financial marketplace for both individuals and businesses.
  • For businesses, the cash flow statement is a central component of cash flow management.

Vacorn HR Accountants are ready to assist in cash management for your company, institution or organization.