Optimization of the company's cash flow

However, when the company found in a report "financial charges on turnover" exceeding 2%, at this stage it is not
necessarily a cash flow difficulties. Therefore the Treasurer may have other immediate concerns than to reduce
financial costs. It is mainly the case of the company with cash "broad", without maturity problem.
Yet, a rationalization of the management of the cash to take advantage of this situation, by increasing the profitability
of funds. Indeed, an improvement in the cash flow forecast can meet the triple question:
Do you want to place Cash?
How much cash can we place?
For how long?
What form (temporary or permanent employment)?
In the case of the company where it is very 'tight' cash where it is important first of all to deal with deadlines, the
problem is quite different. An improvement in the cash flow forecast will naturally to identify better the financial
needs and prevent time his banker's difficult passages.
The study of financial expenses does not alone diagnose the nature and the importance of liquidity difficulties.
Moreover, it must consider fluctuations of bank balances.
1 ° the fluctuations of bank balances.
The daily bank balance of a business in each of its banks should not fluctuate too strongly around zero. Fluctuations
of bank balances come from a bad estimate inputs and outputs of funds, i.e. cash flow forecast absent or incorrect,
or mistakes in the choice of short-term funding, or two both as is the most common case. «Quarterly interest scales»
a business banks allow, on the one hand, to appreciate the quality of the forecast cash, and on the other hand, to
assess the waste of financial expenses.
2 - SCALES OF INTEREST QUARTERLY.
Should specify the nature of this instrument poorly known even for companies, before being able to appreciate its
use
1 - Nature of the 'quarterly interest scales.
Called 'quarterly interest scales', a table prepared by the Bank on which were likely bank balances classified by value
date. As its name suggests, this table is established by quarter, and to calculate interest expense as well as various
commissions due, if any, by the company to its bank. The company which refer to quarterly interest scales,
information on the fluctuation of its bank accounts, can evaluate its possible waste of bank charges, and finally will
appreciate the more or less good coordination of its operations with banks.
2 - The interpretation of the quarterly interest scales.
Representing changes in bank balances by curves, can more easily assess the effectiveness of the cash management.
(a) Trace the graph of daily balances as they appear in the books of the company (date of operation) and on the
scales of interest (dated value). This work is done for each Bank and by quarter. In the first following figure, figure
n°5: Iwaco’s inflows in the BMCI Account during 2015. And the next figure n°6: IWACO’s inflows in the AXB account
during 2015
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