Universitas Gadjah Mada
Faculty of Economics and Business

Cash management is one of the most important company actions to be performed on an ongoing basis, both for small companies and global companies. The size of the company is becoming one of the factors determining the complexity of cash management. At a public lecture entitled “Cash Management” (25/4/14), Amelin Herani, SVP and Head of Payment and Cash Management, HSBC Indonesia was exposing the ins and outs of cash management for the company, as well as banking.

Cash management is a part of the transaction banking and corporate banking. Cash management is a solutions form, namely the overall activity was given to the company within one series. Solutions are different with activities because activities are terms to explain only a single activity that has the goal to meet the consumers’ needs. While the solutions have the end goal for the increasing value of customers.

Cash management demands the company to manage the revenue and expenditures undertaken so that the company knows the exact number of excess cash on that day. The company must know and adjust the amount of cash it held.  “Cash is the company's asset which is most unproductive when idled. The company should know exactly how many cash on hand it has. It will reduce the unnecessary cost which has probability to occur,” added Hera.

Technology is one of most essential supporting components for the management of cash because it is closely related to efficiency. When the company is able to run efficiently, the company will be able to bring a strong product for consumers. The same thing also applies to banking. These reflected on the efficiency benefits posed by the cash management, i.e. a visibility of cash flow, centralized operations that can press costs, a higher return for the company, and the final satisfaction.

Sumber: Nadia/FEB