Everybody knows the phrase of “cash is a king”. Is it true in context of the business environment today? Based on my 11 years experience in cash management, where I have monitored business cash flow in daily basis for the past 11 years in a public listed company, I cannot say more than 110% agreed with the statement.

I have experienced how difficult it was when our company’s coffer dried up due to excessive payment made to our subcontractors and suppliers, not mentioned the overhead cost involved as well. What to do? Using our overdraft facility? Yes, it should be the way but overdraft utilization can only be considered as a temporary solution only. We have to find a solid solution or else we will be suffering in the future. I meant, fatally self destruction!

From my experience, we have to detect earlier the symptom of cash problem or else it will be late already. But how to detect it? This is how preparing a cash flow report is vital to a company or enterprise. Sounds familiar? Every companies prepared it and why the cash flow problem is still exist. What went wrong?

Nothing wrong, but you have to add another powerful reports which I call daily cash management reports. It is like car dashboard where you can monitor the important cash data just with a glance, just like your car dashboard! How to do it? From my experience, I have not seen any books that just show or reveal how to prepare cash management report, I have to list down the vital cash parameter which has been listed by Accounting Professional Body and have to work out for more than 11 years to perfect it.See you later on cash management topic.

If you want to know more on cash management or how to maintain company’s liquidity at all time, feel free to visit my Facebook here;

http://www.facebook.com/people/Kamarulzaman-Baharom/100000713916289