This checklist is designed to ensure effective cash management practices are in place to optimize liquidity and minimize financial risks. It focuses on monitoring cash flows, forecasting cash needs, and managing cash reserves efficiently.
Review daily cash inflows and outflows to ensure sufficient liquidity for operations and identify any cash flow issues.
Project cash requirements for the upcoming weeks or months based on historical data and planned expenditures.
Check all bank account balances to ensure they align with cash flow projections and identify excess or deficit balances.
Determine appropriate levels of cash reserves to maintain for unexpected expenses or opportunities.
Assess potential short-term investment opportunities for excess cash to maximize returns without compromising liquidity.
At the end of each month, review the overall cash position to analyze performance against forecasts and adjust strategies as needed.