Best Practice Financial Processes: Cash Managemen
Best Practice Financial Processes: Cash Management
Cash Management - Best Practice Objectives
Cash Management - Best Practice Features
Cash Management - Best Practice Features
Cash Management - Critical Success Factors
These are a summary of the key business requirements, which must be met to achieve Cash management objectives.

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

Cash Management - Measures / Cost Drivers
Measures
Cost of Capital
Number of bank accounts
Number of banking relationships
Number of outstanding reconciling items < 3 months old
Difference of interest rate of cash accounts vs. Money Market rates per currency
Percentage of cash transactions effected electronically
Number of days in obtaining value for funds
Floating days per bank
Cost of cash function as a percentage of total finance cost
Number of cash transactions per FTE
Number of unreconciled cash transactions
Number of accounts outside cash pooling
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
Cash Management - Level 0 Context Diagram
Cash Management - Level 1 Overview
Cash Management - Appendix 1 : IDEF Process Flow

Best Practice Financial Processes: Cash Managemen