Cash management
In one sentencePlanning and monitoring the cash coming into and going out of the business, so there is enough for obligations when they fall due and the surplus is invested instead of sitting idle.
Simply put
Cash management goes beyond knowing the balance: when will customers pay? When will suppliers be paid? What gap is expected next month?
Its tools: the cash budget, faster collection, negotiating payment terms, pooling balances from scattered accounts, and investing short-term surpluses.
Example
A wholesale store discovers from its cash budget that salaries and warehouse rent fall due in the first week of the month while most collections come at its end, so it negotiates with its suppliers to pay in the middle of the month instead of the beginning.
Don't confuse it with
Cash budgetThe cash budget is a planning tool, while cash management is the full day-to-day work using it and other tools.