Rational planning of fund management

Traditional cash management mainly involves the inflow and outflow of enterprise funds. But in a broad sense, cash management involves a much wider range, usually including enterprise account and transaction management, liquidity management, investment management, financing management and risk management. Enterprise cash management can mainly start with planning cash flow and controlling cash flow.

Planning cash flow is mainly through the use of cash budget means, combined with the past experience of enterprises, to determine a reasonable cash budget and the best cash holdings. If the enterprise can accurately predict the cash flow, it can ensure sufficient liquidity. The cash flow forecast of an enterprise can be divided into short-term, medium-term and long-term forecasts according to the length of time. Generally, the longer the term, the worse the accuracy of the forecast. What kind of cash flow forecasting method to choose depends on the overall development strategy and actual requirements of the enterprise. At the same time, the cash flow forecast of an enterprise can also infer a reasonable cash stock from the inflow and outflow of cash.

Controlling cash flow is the internal control of enterprise cash flow. Controlling enterprise cash flow is based on correct planning, which mainly includes centralized control of enterprise cash flow, receipt and payment control, etc. The centralized management of cash will be more beneficial for enterprise fund managers to understand the overall situation of enterprise funds, control this part of cash flow quickly and effectively in a larger scope, and make the preservation and utilization of these cash reach the best state.