Cash Reserve Management Checklist ( FINANCE )

This checklist ensures that an organization maintains an adequate cash reserve to meet operational needs and avoid liquidity issues. It outlines the steps necessary to assess, monitor, and manage cash reserves effectively.

• Determine Minimum Cash Reserve Requirement

  Assess operational costs and identify the minimum cash reserve needed to cover at least 3-6 months of expenses.

• Review Current Cash Reserves

  Analyze current cash balance and reserves to evaluate if they meet the minimum requirement.

• Forecast Cash Flow

  Project future cash inflows and outflows over the next 6-12 months to anticipate cash needs.

• Identify Surplus Cash

  Identify any surplus cash that exceeds the minimum cash reserve requirement for potential reinvestment.

• Establish Cash Reserve Policies

  Develop and document policies regarding the management of cash reserves, including thresholds for minimum balances.

• Monitor Cash Reserves Regularly

  Set up a schedule to review cash reserves monthly and adjust strategies as needed based on cash flow forecasts.

• Report on Cash Reserve Status

  Prepare a quarterly report on cash reserve status and present it to the finance team for review and action.