HDFC Cash Management Fund

The five different types of cash management tools are-

• Cash Recycler

• Smart Safe

• Coin Counters

• Bank Note Sorter

• Counterfeit Detectors

Typically, cash flow problems are the leading cause of business failures — so it is important to make sure you understand every technique available to keep your business afloat. To have a successful business, you need to be able to manage your cash flow well. Here are some useful cash management techniques to help you as you grow your business.

• Monitor Your Cash Flow Regularly

• Bill Promptly and Accurately

• Encourage Faster Payments

• Designate a Cash Flow Monitor

This term refers to the act of collecting, concentrating, and disbursing cash. In various ways, the management of the flow of cash is a highly critical operation for business managers. When an enterprise happens to miss out obligations because of lack of funds, the enterprise becomes insolvent. This is the primary cause of bankruptcy of an enterprise. Beyond this, a poorly managed cash flow low safety margin occurs when there are expenses that are not anticipated.

The cash management account is the account kept with a financial institution allowing management of your cash transactions across a singular portal. Consider it a main cash hub utilised for the processing of all investment in and out flow.

The cash-management cycle concept is based on the idea of segments:

• The primary cycle is remarked by inbound operations of the enterprise. It begins when the sourcing strategies are defined and comes to an end with the payment that goes to suppliers and with supplies coming to the warehouse for manufacture. The purchase-to-pay cycle.

• The secondary cycle is the outbound operation. The manufacture-to-revenue cycle is largely extensive and contains production, storing, and distribution of final products, together with the fulfilment of customer orders until the value is received.

Cash management refers to the management of cash inflows, outflows and flows inside the firm. It is inclusive of the issues pertaining to deficit financing and investment diversion of surplus cash, so that optimum cash balance could be maintained. Cash management functions start to roll when customers write cheques to pay the firm. This function comes to an end when the supplier, employee or the government recieves funds from the enterprise on a payable account. The basic behind cash management is to give a firm the authority for maintaining liquidity and raising profitability.

The scheme’s objective is to gather income from short-term investments, that are in line with capital preservation and liquidity via investments in portfolios comprising money market and grade debt instruments.

This is an investment plan with the main aim of enhancing income in line with high levels of liquidity. This is achieved via a correct mix of money market and debt instruments in the portfolio.

The Reliance Money Manager Fund is a very popular mutual fund policy from the house of Reliance. This policy sees objective in delivering consistent profit by investing in debt instruments and money market instruments. This fund offers investors an opportunity to yield profits at a shorter interval of time.

This is a broad term that points to the concentration, collection and disbursement of cash in any mechanism. This term entails an enterprise's state of liquidity, together with the cash balance management and strategies for short-term investments.

In certain ways, the management of cash flow is a very important role for all business managers. Whenever an enterprise fails at paying a due obligation owing to lack of cash, the enterprise is considered insolvent. This is why cash flow management is important.