Most small business managers argue that cash management is their leading concern. Often a balancing act between growth and illiquidity of small vehicles with managers of various cash management challenges than their counterparts in larger companies. Compared to larger companies, small companies often understaffed and under trained staff accounting, volatile cash flows dependent on a single product line, limited access to new capital and a substantial portion of their assets tied up in wor … Read more »

Most small business managers argue that cash management is their leading concern. Often a balancing act between growth and illiquidity of small vehicles with managers of various cash management challenges than their counterparts in larger companies. Compared to larger companies, small companies often understaffed and under trained staff accounting, volatile cash limited access to new capital and a substantial portion of its assets in working capital flows depend on a single product line, hardcover. These restrictions are often exacerbated by the management to focus on growth, which can put extra pressure on the cash management system by increasing the net working capital requirements.
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from
H. Kent Bowen,
Andrew R. Jassy,
Laurence E. Katz,
Kevin Kelly,
Baltej Kochar
8 pages.
Release Date: 04 December, 1998. Prod #: 699 047 PDF-ENG
Cash Management Practices in Small Companies HBR case solution

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