Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business.

An effective cash flow process is built on a set of well-defined and clearly stated business objectives. Key objectives articulate the ideal performance results that the company expects from that process. When determining what process improvements are needed to reach the next level of maturity, evaluators should consider the importance of the process being addressed. As the importance of a process increases, its desired capability increases.

This tool features a number of leading practices for the cash flow management process, including:

• Select core cash management banking partners. Develop accurate cash forecasting models.
• Improve investment yields at the lowest cost.
• Review the cash management system regularly.
• Create a centralized cash management infrastructure that serves global needs.