Financial Management: Strategies for Managing Business Finances Including Cash Flow, Supplier Payments, and Customer Receivables

• Author(s): Andreia Alves da Silva Elva
• Paper ID: 1708556
• Page: 235-239
• Published Date: 31-01-2021
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 7 January-2021

Abstract

Effective financial management is essential for the survival and growth of businesses in competitive and dynamic markets. This article explores fundamental aspects of managing business finances, focusing on three critical areas: cash flow control, supplier payments (accounts payable), and customer receivables (accounts receivable). Proper cash flow management enables firms to maintain liquidity, anticipate cash shortages or surpluses, and make informed investment or financing decisions. Managing accounts payable strategically ensures that supplier relationships remain strong while optimizing the timing of payments to preserve working capital. Similarly, rigorous credit and receivables management minimize bad debts, accelerate collections, and stabilize cash inflows. The article also highlights the role of financial planning, budgeting, and internal control systems in promoting transparency, accountability, and operational efficiency. Furthermore, the adoption of digital financial technologies, such as ERP systems and automated invoicing, enhances real-time monitoring and decision-making capabilities. By integrating these financial management practices, organizations can improve profitability, reduce financial risks, and build resilience against market fluctuations, ultimately supporting long-term strategic objectives.

Keywords

Financial Management; Cash Flow Control; Accounts Payable; Accounts Receivable; Working Capital Management.

Citations

IRE Journals:
Andreia Alves da Silva Elva "Financial Management: Strategies for Managing Business Finances Including Cash Flow, Supplier Payments, and Customer Receivables" Iconic Research And Engineering Journals Volume 4 Issue 7 2021 Page 235-239

IEEE:
Andreia Alves da Silva Elva "Financial Management: Strategies for Managing Business Finances Including Cash Flow, Supplier Payments, and Customer Receivables" Iconic Research And Engineering Journals, 4(7)