➢ Cash balances reported on a daily basis by account and business centres
➢ Treasury consolidate and manage cash forecast requirements
➢ Localise cash collection
balances
Forecast cash requirements
➢ Segregate cash management from accounts receivable and accounts payable functions
Process Features
➢ Map cash collection and payment cycles, identify actions to minimise these periods
➢ Manage short term liquidity and long term funding requirements
➢ Minimise company’s cost of capital ➢ Efficiently manage the processing of cash
transactions ➢ Effectively forecast cash requirements ➢ Manage petty cash efficiently
➢ Minimise level of petty cash requirements
➢ Minimum number of banking relationships maintained to ensure coverage and purchasing power
➢ Treasury determine short term cash requirements from cash forecast and daily report
➢. Comprehensive system security and password features for payment
➢ Multi-currency systems
➢ Bank remittance notices issued with sales invoices
➢ Electronic reconciliation of bank statement and cash book
➢ Currency rates available for sterling equivalents
➢ Individual bank account ➢ Automatic
cash balance reports
production of cash
produced on a daily basis forecast
Perform bank reconciliations
Report and manage cash
balances
Forecast cash requirements
System Features
➢ EDI used for majority of ➢ Transmission used for payments and receipts bank statements
➢ Obtain access to on line bank statements
➢ Cash surpluses managed by Treasury
➢ Petty cash/foreign currency floats periodically audited
➢ Forecast cash on a regular basis: rolling 12 month forecast - annual 5 year ahead reviews
➢ Cash management skills ➢ Liaison with financial
institutions
Information Systems
➢ Integrated bank account with subledgers
➢ Automatic bank reconciliations
forecasting ➢ Return on Capital
Cash Management - Best Practice Features
Establish and maintain cash control mechanisms
Perform bank reconciliations
Report and manage cash
➢ On-line/real time ➢ Cash forecasting
Controls
➢ Policies & Procedures
➢ Bank liaison ➢ Authorisation limits ➢ Internal controls
Measures
➢ Speed of reporting ➢ Accuracy of
Cash Management - Measures / Cost Drivers
Cost Drivers ➢ Electronic payment and receipt mechanisms ➢ Number of banking locations and bank accounts ➢ Number of international locations ➢ System interfaces available for cash entries ➢ Types of payments and currencies used ➢ Number of petty cash sites ➢ Number of transactions per day ➢ Extent of government regulation
and control linked
bank accounts reconciled to finance systems
automatically
➢ Analysis by market
➢ Integrated enquiry from share/product cost
cash book entries to sub- etc
210普华永道财务管理最佳 实践之现金管理
Cash Management - Best Practice Objectives
Organisation
People
➢ Centralised cash office & pooling
➢ Integrated with Accounts functions
ledgers
Cash Management - Critical Success Factors
These are a summary of the key business requirements, which must be met to achieve Cash management objectives.
➢ Company loan accounts reconciled monthly
➢ Monitor the cost of cash transmission mechanisms
Cash Management - Best Practice Features
Establish and maintain cash control mechanisms
Processes
➢ Record/manage receipts and payments
➢ Manage cash position ➢ Perform
reconciliations ➢ Perform period end
closing & reporting
Cash Manag
➢ Create netting arrangement with internal business partners
➢ Obtain pan-European banking facilities that allow netting off of account balances
➢ Regular reconciliation of all cash books. Maintain petty cash imprest systems
➢ Electronic Interfaces with Accounts Payable, Accounts Receivable, Payroll and General Ledger ➢ Establish and maintain good relations with banks ➢ Agree Finance terms ➢ Reconcile bank accounts on a regular basis ➢ EDI for the majority of payments and receipts ➢ Automated bank reconciliation systems and processes ➢ Cash monitoring and forecasting techniques provide first class accuracy ➢ Integrated on line systems to audit trail cash transactions ➢ Operate minimum petty cash and foreign currency floats ➢ Separation of Cash management staff duties from other finance operations