Cash Budgetan Imperative Element of Effective Financial Management

Kwame Oduro Amoako, Emmanuel Opoku Marfo, Kelvin Evans Gyau, Felix Oppong Asamoah

Abstract


A firm’s life highly depends on the availability of funds to meet impending obligations as well as efficient employment of excess funds so as to minimize wastages. This paper focuses on cash budgets as a tool that every financial manager should use in ensuring availability as well as effective utilization of cash. Whilst excess liquidity communicates a mangers lack of investment innovativeness, lack of funds to meet short term obligations could also depict a manager’s inability to plan on where and when to get adequate funds for business activities at a lower cost in the short term. Another area of interest in the paper is the role of effective financial management in any organization. Nevertheless, the paper concludes that cash budget preparations enable managers to identify possible future liquidity challenges and at the same time creates a platform for addressing such challenges.


Keywords


Cash budgets; Effective financial management; Liquidity, Cash flow; Receipts; Payments

Full Text:

PDF

References


ACCA. (2012). Cash budget. Retrieved from http://www.accaglobal.com/content/dam/acca/global/ PDF-students/2012s/sa_may12_f2fma-cash_budgets.pdf

Brealey, R. A. (2011). Definition of financial management. Retrieved from http://kalyan-city.blogspot.com/2011/09/what-is-financial-management-meaning.html

CIMA. (2008). Budgeting. Retrieved from http://www1.cimaglobal.com/Documents/ImportedDocuments/cig_tg_budgeting_mar08.pdf

Ciuhureanu, A. T., Balteş, N., & Brezai, L. (2009). The financial management’s role in modern organizations: Interferences and differences between the management of the accounting activity and the financial management. Annuals Economic Studies Timişoara, XV, 597-600.

Hause, R. C., Edwards, D. E., & Edwards, J. T. (1991). Budgeting. Retrieved from www.ncbi.nlm.nih.gov/pubmed/10112577

Jayeola, O., Adebayo, O., & Oluwafemi, O. (2011). Assessment of cash management in Nigerian manufacturing companies. Babcock Journal of Management and social Sciences, 9(1-2), 93-108.

Maheshwari, S. N. (2011). Definition of financial management. Retrievedfrom http://kalyan-city.blogspot.com/2011/09/what-is-financial-management-meaning.html

Marfo-Yiadom, E., Asante, S., & Darkwa, P. (2008). Management accounting (pp.133-137). Cape Coast: CCE Publications.

Olajide and Associates. (2013). Budgeting and budgetary controls. Retrieved from http://www.olajideassociates.com/olajide/annbudgeting.htm

Onuoha, L. N., & Amponsah, E. B. (2012). Bank reconciliation as a due process imperative for effective financial management. Canadian Social Science, 8(3), 52-56. Retrieved from http:// www.cscanada.net/ index.php/css/article/view /j.css.1923669720120803.2955

Riley, J. (2012). Financial management. Retrieved from http://www.tutor2u.net/business/accounts/finance_management_intro.htm

Roth, J. D. (2008). Budgeting: The most important thing you can do with your money. Retrieved from http://www.getrichslowly.org/blog/2008/03/10/budgeting the-most-important-thing-you-can-do-with-your-money/

Schmidt, M. (2013 ). Budget/budgeting: Business case analysis. Retrieved from www.business-case-analysis.com/budget.html

Walther, L. M. (2013). Managerial accounting. Retrieved from http://www.principlesofaccounting.com/chapter21/chapter21.html#Importance




DOI: http://dx.doi.org/10.3968/j.css.1923669720130905.2869

Refbacks

  • There are currently no refbacks.


Copyright (c)



Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Online Submission: http://cscanada.org/index.php/css/submission/wizard

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; office@cscanada.net; ccc@cscanada.net; ccc@cscanada.org

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture