Modern Cash Management

Active cash management is worthwhile for every company
Changes in general conditions, such as increased exports and imports resulting from the globalization of markets, the expansion of the EU and finally BASEL II are making liquidity more expensive. The aim of active cash management is planning, procurement, securing and ongoing optimization of cash and cash equivalents.

In the past decade, a wide range of instruments and measures for controlling cash flows in companies have come into existence. Increased use of technology has meant that these change and develop at an extremely rapid pace. It takes special expertise to be able to provide the company with a positive contribution to its financial result and maintain and increase vital financial leeway.

This book offers managers with financial responsibilities, employees in supervisory positions in finance and accounting departments and controllers an up-to-date, complete overview of this subject area.

Modern Cash Management: Instruments and Measures for Securing and Optimising Liquidity
appr. 200 pages | format 17 x 24 cm | Hardcover
€ 39,90 (A) | CHF 66,50*
ISBN: 3-636-01323-8

Interview with the author, January 2006:
REDLINE WIRTSCHAFT: What tools do you discuss in the book and what trends are making themselves felt in finance management?
M.W.: “There are many trends in the area of finance, more than there is room to mention here. One of the strongest trends, in my opinion, however, is the trend toward internal group financing: a company in a group of companies co-finances another company that needs money directly. The bank is not directly involved. This topic is also discussed in the book. In this book, I provide the first up-to-date overview on the German-speaking market since the early 90s of the most important instruments and measures for the planning, procurement, securing and ongoing optimization of cash and cash equivalents.”

REDLINE WIRTSCHAFT: What do those responsible for finance have to take into particular consideration in these times of Basel II?
M.W.: “Basel II is still a spectre haunting many managers in Austria and Europe. It has been scientifically proven that liquidity has become more expensive and whether it is market corrective or not, we have to learn to live with these altered conditions. These changes, however, provide not only risks but also opportunities. Basel II means banks tightening up on granting credit and no longer being so generous in approving money. Today, loans are already more expensive and are getting more expensive all the time. Freely available funds are becoming more valuable and companies are noticeably looking for alternative financing. But this stage of development is also mainly a process of change in the attitudes of finance managers and of course that will not happen overnight. For the time being, it is about managing resources actively. This ensures ongoing business, makes companies flexible in their strategic plans, avoids interest-bearing ratings, reduces costs and fees and maximizes the profitability of surplus liquidity. In addition to all important topics, such as interest and currency hedging or risk management among other things, the cash management of the company will also continue to play an extraordinarily important role in the company's finance department."