By utilizing effective cash management techniques, you’ll be able to maximize any available cash by immediately reinvesting it into your business or allocating it for future expenses. Seeking training to fine tune your business cash flow management enables you to avoid risky investments and strike a successful balance between saving and spending.

Cash management techniques cover everything from simple budgeting and investing surplus cash to managing accounts receivable and payable. Educational opportunities will help you manage each aspect of your finances to reduce borrowing and increase profits. Hone your cash management system by trying to:

1. Sign up for classes that present cash management solutions to improve the way you manage incoming and outgoing funds.
2. Enroll in seminars to focus on specific cash management solutions or as continuing education to stay up to date on the latest techniques.
3. Find cash management articles, a cash management tutorial or online learning opportunities that help you develop cash management strategies for business at your convenience.
   

Action Steps
The best contacts and resources to help you get it done

Take cash management strategy courses to develop a system that increases your financial efficiency

Learn a new cash management solution and get hands-on experience with cash management software and tools through on-site courses. Find classes that help you develop an overall cash management strategy or that update you on issues that didn't exist when you enacted your current system.

I recommend: The Northwestern University School of Continuing Studies offers a professional development program for Cash Management Fundamentals. The cash flow management program covers such topics as guarding against cash shortfalls, e-commerce and managing cash in international markets. Get Treasury and Cash Management training through Eno. Available courses cover cash management configuration, funds management best practices and risk management.

Attend seminars to keep current with specific cash flow management strategies

Cash management seminars allow you to learn more about specific issues to address problematic areas in your current cash management system. Seek continuing education to ensure you're up to date with international issues, cash flow statements or financial regulations, for example.

I recommend: Learn more about corporate cash management strategies through seminars from the American Management Association. The seminar is ideal as an introduction to cash flow management principles. Search through the FindaSeminar listings to find a cash management seminar at a location near you.

Use online or self-paced cash management training opportunities to learn at your convenience

If you need a refresher on cash management or need to learn a new technique without losing time at work, seek online cash management education so you can learn off the clock. You'll then be able to integrate the new strategies into your current system immediately.

I recommend: Chapman University offers an online course in corporate cash management that covers important concepts and the goals of cash organization strategies. Take a financial training CD-ROM course in cash management offered by Biz Hotline.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Seek articles on cash management to build a reference library and track cash management trends. With articles and training literature available, you'll be able to refer to it when refining your cash management strategies to meet your company's current needs.

Many small businesses haven't thought much past the day when their books sneak into the black. Yet every business, even those still struggling with negative cash flow, should plan cash management techniques for managing excess cash.

In this article, you will discover

1. Cash management strategies to get your business out of the red
   
2. How to determine if you have cash available for saving or investing
3. Cash management solutions for investing your business's cash

Action Steps
The best contacts and resources to help you get it done

Maximize cash flow and get your business profitable

Before you can institute your cash management techniques, your business should have cash to manage. Articles on cash management provide cash management solutions that can help stabilize your company.

I recommend: L. Gary Boomer's article has 10 management strategies that improve cash flow management in any business. Better Cash Flow Management is also covered in great detail on Work.com. A very detailed article on business cash flow management was written by Boston Private Bank and Trust.

Monitor your business cash flow

Accounting software can help you watch your cash flow. You can set up bills and payments via this software, and predict whether you have cash that has no where to flow to.

I recommend: QuickBooks is the most popular, and often best-rated accounting software for small businesses. Simply Accounting, Peachtree Complete Accounting Software, Sage BusinessVision Accounting Software, and Microsoft Office Accounting Professional are other brands of highly-rated accounting software.

Hire professionals to analyze your business's cash management

If you suspect your business has cash ready for investment, ask a professional to confirm this. Professionals can help by brainstorming bills you may have forgotten about or by determining how much of your cash flow should go into a savings plan, instead of an investment.

I recommend: finding a Certified Cash Flow Consultant (CCFC) to help you determine if your business has money available for investing and how much is available. You can find search for a CCFC by state through AmericanCashFlow.com. You can browse cash management articles written by CCFCs on TheSideRoad.com or the American Cash Flow Journal.

Learn about your investment options

Once you decide you have cash to invest, start looking into your investment options and build your cash management strategy.

I recommend: starting at the bank where you have your business checking and credit accounts. They may offer average or better rates on Sweep Accounts or Certificates of Deposit (CDs). If you want to shop around, large investment firms, such as Charles Schwab and Merrill Lynch often offer good rates on money market accounts and mutual funds.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Always allocate cash is a way to improve your business's stability. Pay off debts before investing. In most cases, the interest on a company credit card is much larger than the interest gained on any investment.
• •  Be wary of risky investments. Never make an investment decision that has a good chance of reducing your business's cash cushion.

Having a firm grip on your cash management strategy will help you keep a cash reserve in case of need. The need may be an emergency or it may be a large purchase with a price that is too good to pass up, but either way the funds will be available for use. The first step involves maximizing your cash flow. You will also start building up an emergency nest egg by putting it into a fund that earns interest but is still accessible in times of financial crisis. As your business begins to grow and payments become predictable, investing in certificates of deposit with staggered maturity dates becomes an option. There are many other options available, and speaking to your local bank cash management department can help you figure out which ones are right for you. Learn more about the following cash management key terms: cash flow, projections, key financial ratios, profit-and-loss projections, disbursements and cash resource optimization.

Action Steps
The best contacts and resources to help you get it done

Cash flow

Your cash flow is your profit and loss affected by your accounts receivable, your inventory, your accounts payable and your capital expenditures, as well as what you have borrowed.

I recommend: Learn more from Inc on how to define cash flow.

Projections

Cash flow projections are a forecast of your anticipated cash needs. Use projections to look at your short-term and long-term goals.

I recommend: Learn about short-term, long-term annual and long-term strategic projections from Small Business Notes.

Key financial ratios

The key financial ratios for your business are the ratios that help you make sense of the figures from your financial statements.

I recommend: Use the tools from American Express to learn about ratio analysis basics. Spot financial patterns that may damage your business before they can hurt your company.

Profit-and-loss projections

Profit-and-loss projections are long-term forecasts for your business.

I recommend: Read out about a three-year, profit-and-loss projection from BNET.

Disbursements

Disbursements are your company's payables and cash outflow. There are a variety of products and services available to help you manage the money flowing in that direction.

I recommend: Look at the variety of disbursement options available through TD Banknorth.

Cash resource optimization

Cash resource optimization is making the most of the available money on hand by using short-term investment solutions to give you interest on the funds that you have.

I recommend: Check out the cash resource optimization options from BMO Capital Markets.