This checklist is designed to ensure that a company maintains adequate cash reserves to meet its short-term obligations and operational needs while allowing for strategic investments and unforeseen expenses.
Collect data on cash inflows and outflows from previous months to understand cash flow patterns.
Review the current cash balance and compare it against minimum reserve requirements.
Identify and list all upcoming expenses, including payroll, bills, and other obligations that will impact cash reserves.
Establish the minimum cash reserves needed based on operational needs, financial obligations, and risk tolerance.
Develop strategies for maintaining cash reserves, including adjustments to spending, increasing revenue, or securing additional financing.
Set a schedule for regular review of cash reserves to ensure they remain adequate in response to changing business conditions.
Record all findings, decisions, and action plans regarding cash reserves for future reference and accountability.