Cash Reserve Analysis Checklist ( FINANCE )

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.

• Gather Historical Cash Flow Data

  Collect data on cash inflows and outflows from previous months to understand cash flow patterns.

• Analyze Current Cash Position

  Review the current cash balance and compare it against minimum reserve requirements.

• Evaluate Upcoming Financial Obligations

  Identify and list all upcoming expenses, including payroll, bills, and other obligations that will impact cash reserves.

• Determine Cash Reserve Requirements

  Establish the minimum cash reserves needed based on operational needs, financial obligations, and risk tolerance.

• Create a Cash Reserve Strategy

  Develop strategies for maintaining cash reserves, including adjustments to spending, increasing revenue, or securing additional financing.

• Review and Adjust Regularly

  Set a schedule for regular review of cash reserves to ensure they remain adequate in response to changing business conditions.

• Document Findings and Actions

  Record all findings, decisions, and action plans regarding cash reserves for future reference and accountability.