Cash management encompasses all activities that affect the organization’s cash. It involves liquidity management through investment in short-term securities or borrowing in the money markets or from the organization’s banking network. It also involves relationship management with the organization’s banks and trading partners.
Anther important aspect of cash management is cash flow operations, which focuses on managing the mobilization of cash and the efficient means of keeping the organization’s cash position within desired levels. Finally, cash management covers cross-border transactions as well as the international transactions that are done in the U.S., such as converting to/from foreign currencies.
TIS Books offers Managing Your Cash Position, which shows the treasury manager how to handle these various functions on a basic level.