Cash management analysis within a local company importing I.T. equipment : a case study

Abstract

The business world is a fast-changing reality, in which success is only ensured as long as one maintains that extra edge above competitors in the same industry. Knowledge of cash management gives managers the ability to handle their financial resources in such a way that enables the company to be more cash generative, hence paving the way to a profitable business. The overall aim of this dissertation is to instil the importance of cash management into a local l.T. company in an effort to improve its financial stability. Up until a few years ago, this micro company has been able to create and maintain a healthy, profitable business without having to adopt adequate cash management procedures. However, recently it has suffered a severe blow with the emergence of a number of competitors within a small time frame. The study examines the problematic areas within the company's current cash management procedures and suggests possible solutions to maximise cash availability. Direct interviews and on the job observation were conducted in order to analyse the present situation regarding the management of cash within the l.T. company. An intensive research about cash management was also conducted in order to offer practical solutions for an improved cash management strategy.