Learning Objectives

The Principles of Cash Management (Knowledge) unit develops you an understanding of the principles of managing cash balances and deficits within an organisation. You will understand and be able to advise on options available for both raising finance and investing surplus cash. Any advice offered should not be detrimental to the cash flow of normal business activities and should minimise risk to the organisation.

The Cash Management (Skills) unit helps you to develop the skills necessary for managing cash balances to ensure the ongoing liquidity of an organisation. You will demonstrate these skills through the forecasting of income and expenditure and the preparation of cash budgets that enable informed decision-making regarding both the borrowing and investing of surplus funds.

Learning Outcomes

• Understand how the external environment impacts on how an organisation manages cash assets.
• Be able to make informed decisions regarding the management of cash balances within an organisation.
• Understand a range of accounting and other business techniques used to improve the efficiency of cash management procedures within an organisation.

• Prepare forecasts of income and expenditure for a given accounting period.
• Use forecasts to monitor cash flow within the organisation.
• Use cash balances effectively.