The main financial criteria of the Company, which provide information management for effective management:

• revenue;
• profit;
• cash flow.

Basic principles of cash asset management:

• maintaining an optimal cash balance for continuous operations;
• creating a reserve of free cash to compensate for unpredictable and potential losses;
• the seasonal nature of changes in cash balances;
• transformation of free cash into highly liquid financial investments and reverse conversion;
• the formation of an investment cash balance for the implementation of effective short-term financial investments in certain market segments.

The objectives of cash management:

• determination of the optimal amount of cash balance required for the calculation of its own urgent financial liabilities;
• calculating investment opportunities for short-term financial investments.

Cash Management Issues:

• lack of operational information about the sources and timing of cash inflows and payments;
• inconsistency of cash flows over time;
• lack of calculations on the distribution and use of funds;
• inconsistency of requests for funding from the real need for funds;
• lack of calculations of economic feasibility and timing of sources of repayment of loans.

Causes of cash deficit:

Internal

The decline in the volume of goods:

• loss of part of the main consumers;
• lack of assortment policy.

Disadvantages in the financial management system:

• weak financial planning;
• lack of financial service or its optimal structure;
• loss of cost control;
• low qualification of personnel;
• lack of management accounting.

External

• non-payment crisis
• non-cash forms of payment
• competition
• rising energy prices
• exchange losses from exports
• tax pressure
• high cost of borrowed funds
• inflation pressure

The main models that provide effective cash management are:

• model of using the upper and lower control boundaries;
• optimal demand calculation model;
• model of Baumol;
• Miller-Orr model.

Total. The main condition for achieving the goals in cash management is minimization of the costs of their ownership.

Application. Publication Choosing a cash management model