Cash management

Cash management is concerned with the meaning of :

(i) Cash flows into and out of the firm.

(ii)Cash flows within the firm and

(iii)Cash balances held by the firm at a point of time by financing deficit or investing surplus cash.

According to Van Horne,” Cash management involves the efficient collection, disbursement and temporary investment of cash”

According to Schall and Haley,” The term cash management refers to the general problem of managing firm’s cash balance, cash flows and short term investments securities.”