What is "cash flow management"?

Cash flow management refers to the process of monitoring and optimizing both the inflow and outflow of cash within an organization. This involves keeping a close eye on revenues as they come in and expenses as they go out, ensuring that there is enough liquidity to meet obligations as they arise. Effective cash flow management is crucial for maintaining financial stability and supporting ongoing operations.

This practice allows businesses to identify trends, anticipate shortages, and make informed decisions regarding expenditures and investments. It is not limited to just tracking cash inflows or focusing solely on investments or staffing costs; it encompasses a comprehensive approach to managing the complete cash cycle. By optimizing both inflows and outflows, organizations can improve their financial health and support long-term growth objectives.