INSTITUTE OF COST & EXECUTIVE ACCOUNTANTS
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INSTITUTE OF COST & EXECUTIVE ACCOUNTANTS
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"Cash -- the ultimate and only non subjective way of measuring business performance"By Alan Waddington MBA FCA FIPFM and Jan Davies BA MSc FIPFMIf, in the long term, a business spends more cash than it generates it will fold. Even in the short term there may be seasonal inflows and outflows of cash which will create stress on the cash resources of the enterprise. This article examines the management of cash in the context of business school thinking over the last twenty years. Its importance has been downgraded in the face of alternative approaches to motivation, planning, measurement and control. A plethora of management and shareholder ratios have been used to interpret performance, most of which are flawed because of their reliance on numbers that someone has had to take a subjective decision about. NB -- This Feature has only been partly reproduced for illustration purposes only. For More Information Contact: |
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