Optimization of the company's cash flow

They may have originated an investment, a commitment to operate given or received, a bank credit, etc. In all cases
the flow will be a particular behavior that should be identified.
It is to analyze:
Techniques of movements.
Means of payment (case, , bills, transfers, etc.) insofar as they influence the movement of the flow; rules of
movements of funds Bank registration (dates of value);
The habits of partners (customers, suppliers, etc.);
Time of flow of funds (the ' float');
The assessment of movements.
The purchasing power of the currency instability alters the value of the movements. In this regard on account of its
variation over time (inflation) and space (exchange rate risk).
The frequency of movements.
It will distinguish the movements 'permanent' (final as an investment, or repetitive as a business expense-related),
and the 'transitional' (at sporadic or seasonal nature) movements, i.e. cyclically activity.
3 - The nature of flows and the use of banking services.
Any monetary problems such as management of the Treasury of the company is dependent on the institutional factor
that constitutes the banking system. Financial institutions ensure the flow of funds between companies of groups. In
addition, they have a fundamental role in financing the activity of firms acting as sponsors, lenders, or 'relay'
temporary. It has been said that the cash management was closely subject to the quality of Bank-enterprise relations.
Still need to know and use the services that one is entitled to expect of its bank.
At best, it will never go beyond a fair compensation of the net gains that the firm allows him to achieve. To be able
to enjoy the services rendered and the need to negotiate, the contractor must, therefore, assess the gains from cash
flow passing through the Bank
The analogy with inventory management models is therefore facing serious difficulties. First, we notice that the
management methods used inside the company are not as easy to implement their simplifying assumptions of reality
could leave it hoped. This is due to the fact - analytical strength set apart - that they do not correspond to the concerns
of the Treasury’s manager. The transfer policy does not have this central role, and the choice of a short-term funding
is based on serious forecast. Then, the employee approach which consists in extracting cash from the rest of the life
of the company management, if it is attractive and convenient in terms of analysis remains not less perfectly arbitrary
and dangerous.
Indeed, managers believe implicitly that a balance exists between the flows, and simply offer to make profitable the
management in determining what should be retained in the form of cash, and what it takes place. Also, they reduce
the cash management optimization of a species-titles by appropriate transfers stock. This policy is based on the idea
that "it is prepared to sacrifice profits to have a better liquidity situation."
On the other side, we will attach to demonstrate that a policy that makes every effort, to achieve sync stream inputs
and outputs of funds, improves both liquidity and profitability.
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