Cash Management and Budgeting - Reflective Journal

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