THE ROLE OF CASH FLOW IN COMPANY FINANCE MANAGEMENT

Abstract

Enterprise financial management includes planning and forecasting the company's cash flows. Forecasting future cash flows helps develop a cash flow budget for current, financing and investing activities. The purpose of writing this article is to determine the role of cash flows in the effective financial management of a company. In the article, the authors indicate that effective cash management reflects the solvency of the company, which confirms its ability to fulfill financial obligations on time. The authors list the problems that companies may encounter if they do not monitor and properly distribute cash flows. The authors point out that it is non-cash cash flows that provide convenience and security in financial transactions. Recommendations are provided for companies to effectively manage cash flows.