Managing Cash Flow - An Operational Focus

Rob Reider
Peter B. Heyler

2003, John Wiley & Sons, Inc.

Contents
About the Authors v
Acknowledgments viii
Introduction 1
Chapter 1: Understanding Cash Management 9
Cash Flow Basics 12
History, The Fed, and Float 21
Bank Issues and Concerns 28
Conclusion 33
Chapter 2: Managing Cash Flow—Receipts and Disbursements 35
Using the Balance Sheet 36
Cash Receipts 39
Cash Disbursements 58
Conclusion 67
Chapter 3: Planning and Budgeting 69
Relationship between Planning and Budgeting 71
Strategies for Competitive Advantage 74
Strategic Planning Process 76
Short-Term Planning 81
Conclusion 94
Chapter 4: Analyzing the Sales Function 95
Cash Management Study 95
Purpose of the Sales Function 96
Conclusion 122
Chapter 5: Cost Reduction Analysis Procedures 123
Benchmarking Strategies 124
Activity Based Costing Principles 152
Conclusion 174
Chapter 6: Analyzing Non-Value-Added Functions 176
Looking at the Accounting Function 177
Choosing What to Analyze 179
Identifying Goals and Basic Business Principles 182
Prioritizing Activities 184
Financial Reporting 185
Developing the Cash Management Analysis Survey Form 188
Compiling the Data 188
Analyzing the Data 192
Organizational Issues 198
Budget Analysis 200
Analysis of Functional Costs 202
Analysis of Accounting Operations 206
Activity Based Costing Applications 211
Developing Recommendations 213
Specific Recommendations 214
Organization Recommendations 233
Other Areas for Review 235
Conclusion 237
Chapter 7: Investing, Financing, and Borrowing 239
Investing Excess Cash 239
Financing Sources for the Business 250
Borrowing for Cash Shortfalls 251
Conclusion 262
Chapter 8: Planning Cash Flow 263
Cash Flow Planning 263
Managing Cash Balances 276
Cash Planning Approaches 279
Conclusion 282
Chapter 9: Controlling and Analyzing Cash Flow 285
Brief Look at FASB 95 285
Cash Flow Projections—Methodology 287
Cash Flow Reporting and Controls 293
Interpretation and Analysis of Cash Flow 300
Conclusion 322
Afterword 323
Appendix A—Cash Study: Managing Cash Flow 325
Appendix B—Cash Conservation Checklist 341
Index 347