Managing Cash Flow

94 Planning and Budgeting
• Training programs
• Management and staff development
• Coordination
• Understanding of operations
• Problems solved
• Sales forecast versus production schedule
• Customer relations; employee relations; bank relations
• Inquiry delays
• Number of praises or complaints
CONCLUSION
It would be nice to think that every organization has an effective planning system
as described above. However, management may find that very few organizations
come close to planning and budgeting in this manner. In cases in which such planning
systems do not exist or are found to be deficient, management must superimpose
such concepts on the organization or area under study to establish desired
results prior to commencing the cash management study. The company must also
keep in mind that their task is not merely to determine the existence of such planning
systems, but the effectiveness of these planning systems in moving the
organization in the right direction toward more positive cash flow. To be most
effective, the planning system must be continually attended to and the related
budget flexible so that it supports the plan rather than making it more difficult to
achieve results.
THE MORE THE INPUT, THE BETTER THE PLAN.