Buy custom Cash Management Techniques And Methods Of Short-Term Financing
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1248 |
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This elimination of cash balances is done through the control of collections, or cash inflow, and disbursements, or cash outflow. In the past, companies have chosen to use float because it gives them the most control over their cash flow when compared to the other techniques of cash management. While improving collection time and decreasing collection float is important for a company and can be done through an increase in collection centers, the float associated with disbursements can in fact help a company hold on to an interest earning cash balance...
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While improving collection time and decreasing collection float is important for a company and can be done through an increase in collection centers, the float associated with disbursements can in fact help a company hold on to an interest earning cash balance. However, as beneficial as float may be to a company’s control of their collections and disbursements, it is being limited by the Check Clearing Act of 2003 and by the increasingly popularity of Electronic Funds Transfer...
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