Strategies for Management of Corporate Cash

How long will companies continue to lose money? How long the levels of economic resources are always headaches? These and many other questions have remained unanswered, because of the uncertainty that pervades the future of business by the crisis in the market environment in which business is conducted, at which shareholders are now demanding that companies require their managers rational action and practices in line with the events of the present and the future prevention of the risks of illiquidity that might be incurred as running in the direction of current without an inner transformation in business management would be almost impossible to compete, If executives do not have trained, and proactive, identified with their job performance in meeting goals and objectives. Cash flow projections have become an alarm bell tool of great power shortages and to provide for use of surplus money, hence the development of cash flow is not a mere number crunching exercise but rather a strategic plan that includes descriptions of actions committed with specific objectives, responsible actors, synergy in their departmental processes and measurable indicators for the benefit of achieving profitability, efficiency and security of investment.

Among the factors that influence factor income generation could mention: The profit margin of product sales volume, inventory level, the level of demand, the volume of production, installed capacity utilization, the level liquidity available to the company, the economic conditions of the region or country and the level of perception of the manager to distinguish between expenditures and investments productive and unproductive, for the above result we have an operate all proposed goals and shares each of the members of the organization's operational processes and the costs and benefits are two sides of one coin with different pay. To evaluate the inputs and outputs of the money is necessary to consider:

1) Cash inflows .- Analyze all the necessary adjustments according to the cyclical trends of sales and extra income that can be generated, so it is preferable to include explanatory notes to the projections and fluctuations that might give. 2) Cash outflow .- The projected cost by category helps prioritize disbursements, and view those that have to be made in cash, such as those purchases made on credit and have to be settled in a given period, remembering that the rate of inflation, interest rates for financing, and the exchange rate prevailing factors when making decisions on disbursements, the cost of money. 3) Determination of cash flow .- The income minus the expenses of each week, month or year are influenced to the beginning balance for next period, however, the skill with which are available to generate cash receipts and disbursements will impact in its cash balance to generate liquidity without cost. The speed and amount of money management are principles that act as devices when making decisions, which requires knowledge and skills to manage.

QUANTITY - TICKETS FIRST PRINCIPLE "Wherever possible there must be more cash inflows" Among the recommended strategies: Increase sales volume relative to its cost-benefit Increase the sales price to the degree of elasticity of demand Improved sales mix (promoting the highest contribution margin) Eliminate discounts that might not contribute to profitability Set artful layering of client and permanent control. Perform slow-moving goods, waste and unnecessary business. AMOUNT PRINCIPLE TWO-OUT "whenever possible should reduce cash outflows" Among the strategies recommended: Pay no commissions on sales receipts. Negotiate better conditions (price cut) with suppliers, reduce waste in production and other activities of the company. Rent instead of buying Doing things right the first time (Lower Quality costs have not) Believe in business, investing in productive assets Focus on current customers objetivos.VELOCIDAD-INPUTS third principle "Whenever should be possible to accelerate cash receipts? Among the recommended strategies: Ask Shorten advances to customers credit terms, provide discounts for early payment offer advantages to customers.

Chase delayed payments when cash Venda Seeking maximum inventory turns, but the profit margin is more bajo.VELOCIDAD PRINCIPLE FOUR-OUTPUT "Whenever possible you should delay outflows" Recommended Strategies: Negotiate with major suppliers as possible. Acquiring the inventories and other assets at the time closest to when you will need to exchange their products Perform Remember that cash flow is the result of business decisions, so that investments in assets in customer accounts receivable, inventory , fixed asset is money stored here then, that in finance there is the aphorism that says: Before I go to apply for a bank loan for the money you have tied up in the portfolio in stocks or other unproductive assets. Remember that "You can not manage what you do not know" Strategies for Managing cash flow: Felix_german_c@hotmail.com