Cash Management

Cash management is all of the cash-related doings in a business: collecting cash, spending cash, investing cash, counterfeiting cash, etc.

Good cash management means it's done efficiently, allowing the business to run itself in a financially stable manner with all the i's dotted and t's crossed...all the lawyers happy and peppy and certain that they'll get paid their usurous fees.

Why does this hoary topic even matter? Because companies often have tons and tons (and tons) of cash...and debt. And the difference of half a percent in returns from investing that cash is often a big needle-mover in the scheme of things. See Money Market and Commercial Paper.

If nothing else, the goal of cash management is to remain solvent, meaning the company can pay for all of its long-term obligations. After that, cash management can be used to increase profitability and keep the company stable when facing unexpected expenses. That’s how teasuries do.