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The 5 basic principles of cash management include:1- Increase the speed of receivables collection; by lowering the average collection period for funds, you will have more money to use for operations or investing. Offering a discount for early payment is one method that can be used to speed up the payment process.2- Keep inventory levels low; maintaining the proper levels of inventory are crucial to maintaining your available cash levels. The cost of inventory and warehousing it is a huge expense; this is why right-on-time is a good way to go if it is feasible for your company. It is also important to consider the shelf life and the depreciation of your products. Most foods have a short shelf life, and items such as computers and computer related items have a fast depreciation rate. 3- Monitor the timing of payment of liabilities; you should take advantage of the full payment period, but do not pay them late, this could damage your credit rating.4- Plan timing of major expenditures; you should plan the timing of major expenditures; they should be made when you normally have excess cash which is typically during the slow season.5- Invest idle cash; leaving cash in your safe will earn you nothing. Letting large amounts of cash just sit without reinvesting it is not good money management.
What else can I help you with?
Is a basic principle of cash management increasing the speed of paying liabilities?
Yes, one of the basic principles of cash management is increasing the speed of paying liabilities.
Cash book as a tool for cash management?
Cash book is commonly used as a tool for cash management. This is the basic accounting for money is received and spent in an organization.
What are the basic principle of work management?
Principle of Risk Variation. Principle of Cost of Capital. Principle of Equity Position. Principle of Maturity of Payment.
A principle of risk management?
the three basic categories of control?
What is a principle of basic financial management?
The basic principle is this. Income exceeds expenditure = PROFIT Expenditure exceeds income = LOSS No profit or loss = BREAK-EVEN
What is a basic principle of wildlife management?
Keep animals safe from humans, and humans safe from animals.
What is management of principle?
what is management of principle
A system built on the basic principle that many of the same management strategies that apply to one emergency will apply to other emergencies is?
Comprehensive Emergency Management
A system built on the basic principle that many of the same management strategies that apply to one emergency will apply to other emergencies?
Comprehensive Emergency Management
A system built on the basic principle that many of the same management strategies that apply to one emergency will apply to other emergancies is?
Comprehensive Emergency Management
A system built on the basic principle that many of the same management strategies that apply to one emergency will apply to other emergencies is what?
Integrated Emergency Management
What system is built on the basic principle that many of the same management strategies that apply to one emergency will apply to other emergencies?
Integrated Emergency Management
