What is the meaning / definition of Cash Management in the hospitality industry?
The term Cash Management describes the field of management that concerns itself with the collecting, managing and investing of cash. Cash Management is highly important in hospitality due to its ability to improve cash flow and shortening the cash cycle. Thereby allowing operations departments to act and purchase more flexibly.
The objective of Cash Management is to maximise liquidity, optimizing cash resources, control cash flows and maximise the value of funds while minimising the cost of funds.
Cash Management solutions can be anything that increases the efficiency and cost effectiveness of financial processes.
See Also:
- Cash Conversion Cycle
