Cash Management and Budgeting - Reflective Journal

This reflective journal discusses the importance of cash management and budgeting in business. It covers topics such as cash flow, cash budgeting, and financial management. The author reflects on their learning process and identifies areas for improvement.

Reflective Journal

Table of Contents
Cash management and budgeting....................................................................................................3
References..........................................................................................................................................7

CASH MANAGEMENT AND BUDGETING
It is essential to make sure that appropriate cash is available for fulfilling the responsibility and
the idle cash is appropriately invested. One primary function of the association is to “treasurer”
the cash flow of commencing and identify probable periods of the deficit and excess cash flows.
Moreover, on a daily basis detailed cash budget is frequently updated and managed. For the cash
planning system, cash budget is a most important component which helps to signify all the plans
that represent cash inflows and outflows for the affirmed period (Wildavsky, 2017). Therefore it
is measured that week learning gives an in-depth look at cash management and budgeting.
Cash management is engaged with the company’s management and its collection, short term
investments and currencies. It is essential for the small companies as of abridged accessibility of
reasonable credit, first expenses that should be managed as receivables inflows (Das and Parida,
2016). Effectual cash managing facilitates the small business that needs suppleness to handle
payroll, in addition, to meet up any unpredicted operating cost.
Cash is a "non-earning asset," as it is required for payrolls, resources, to acquire fixed assets, to
pay taxes and bonuses and to service debt. Moreover, it is the duty of the financial manager for
operating normal business reduce cash detained in the procedure. 2) make sure that appropriate
amount of cash is available for taking trade discounts, fulfilling unpredicted (urgent situation)
cash requirements, and uphold the business credit rating (Gitman, Juchau and Flanagan, 2015).
I am learning cash budgeting and management in the learning week; it is because it is highly
significant to understand the same in order to gain better insights into business and cash
management. Since, my career goal is either to become a financial analyst in a reputed company

or to start my own business, so irrespective of the nature or size of the business, it is extremely
crucial to know the tools, aspects and implementation of budgeting while adequately managing
the cash. It is not easy for me to take all the learning aspects into account in regards with cash
management and budgeting, several challenges come in the learning process such as budget
solving, financial problems etc., but I will make utmost efforts and contribution to make it
worthwhile. I am learning this topic through practical as well as theoretical means, and I am
using the derived learning on a realistic basis to stimulate my knowledge. The learning weakness
of mine is that I am sort of an introvert and I am not able to interact with people, however for
appropriate cash management and budgeting it is essential to maintain good interaction and
relationship with people. I overcome with this learning weakness by regularly interacting with
peers, and sharing my ideas and opinions. I have a lot of interest on this topic from the start, and
also since I realized that this is my ultimate objective, I started working on the same and tried to
improve more and more and learnt from my mistakes continuously. I am a more a practical
learner, so I faced challenges in applying the concepts theoretically, I lack learning things from a
theoretical basis, and this is my greatest challenge which I want to eliminate, as it will help me in
making better decisions and boost creative thinking in the near future. I can improve my learning
process by putting a right balance of theoretical and practical learning, I will continuously make
use of my own ideas and perspectives, plus I use my gained knowledge realistically by applying
it on a real time budget. I will improve this by creating my personal budgeting, tracking it,
identifying the tools by which expenses can be reduced, making a plan that is beneficial is
offsetting all debts and finding a replacement for those significant expenditures that business
generally face (Thibierge and Beresford, 2015). The different elements I will require in the
learning process as well as in my future include budget preparation, basic financial statements,

maintain documents and receipts, collaboration in financial management, and the skills I will
require are financial skills, accounting skills, technological expertise, analytical skills and
communication. I will take feedbacks from my supervisor for improvisation in my learning, as it
helps me in motivating to enhance the performance by developing abilities, stimulating efforts,
and recognizing results. It provides consistency and is applied in the managerial strategy plus the
effective feedback reviewing can help in reducing mistakes and improvising performance with
increasing effectiveness in work (Alviniussen and Jankensgard, 2015). All of the learning parts
are connected with each other; it is because they all are about the appropriate management of
cash and budgeting and reflects best interest wherein all such aspects such as planning,
predicting, assessing, managing and training and all related with each other. My learning of the
particular topic is positively impacted by my knowledge in the earlier topic, as due to my past
experience and understanding, and my interest in this field facilitated me to getting involved in
practical usage of the cited topic. It is because cash management and budgeting is the core of
financial planning which is essential to be learnt (Kaplan and Atkinson, 2015).
I am pursuing my goals deliberately, as my ultimate goal lies in the same, plus cash budgeting
cash flow prediction and analysis are critical for-profit reporting and simultaneously help start-
ups in getting successful. Along with this, an in-depth understanding of cash flow and its impacts
is the core to operate a business effectively. My thoughts are shaping as I indulged into its
learning process, as I get to know more about this topic. Also, I acknowledged the aspects which
I was not aware of before. Now I am able to understand strategic and financial management
aspects based on asset management, risk assessment and management, best optimization of tax,
consideration of profitability ratios which will assist me in making good decisions on finance and

structuring capital. I will overcome my weakness by collaborating and communicating more, by
enhancing my financial and analytical skills and boosting my theoritical knowledge.

REFERENCES
Alviniussen, A. and Jankensgard, H., 2015. Enterprise risk budgeting: bringing risk
management into the financial planning process. Sage.
Das, C.P. and Parida, M., 2016. A Study on Cash Management and Determinants of Cash
Holding. Splint International Journal of Professionals, 3(3), p.102.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Thibierge, C. and Beresford, A., 2015. Cash Management and Risk Management. In A Practical
Guide to Corporate Finance(pp. 239-266). Palgrave Macmillan, London.
Wildavsky, A., 2017. Budgeting and governing. Routledge.