Essentials of Managing Cash by Allman-ward, James -- Read -- Imperial Library of Trantor

Index

Essentials of Managing Corporate Cash Preface Chapter 1: Introduction to Managing Corporate Cash

Overview What Is Cash Management? The Cash Management Profession Historical Perspective Why Cash Managers Are Needed

The Operating Cycle and the Cash Flow Timeline The Nature of Cash Flows

Positioning the Cash Manager

The Role of the Cash Manager

Important Concepts Summary

Chapter 2: Payment Systems

Overview Important Concepts

Clearing and Settlement Systems Immediate Settlement Systems Delayed Settlement Systems Hybrid Systems Transaction Types

Electronic Payment Methods

The Fedwire System Fedwire Advantages and Disadvantages Fedwire Security Clearing House Interbank Payments System (CHIPS) CHIPS Advantages and Disadvantages Automated Clearing House (ACH) ACH Advantages and Disadvantages

Checks

Characteristics of Checks The Check Clearing Process Check Advantages and Disadvantages

Other Payment Mechanisms

Trade Drafts Bank Drafts (Cashier's Checks) Cash Credit and Charge Cards Procurement Cards

Payment System Standardization

Electronic Data Interchange (EDI) NACHA Formats SWIFT Payment System Risk

Summary

Chapter 3: Managing Cash Inflows

Overview Inefficiencies in Collection Activities

The Role of Paper

Mail Float

Causes of Mail Float Solutions to Mail Float

Processing Float Availability Float

Internal Bank Deadlines Bank Processing Solutions for Availability Float

Lockboxing

Lockbox Networks Wholesale Lockbox

Ancillary Collection Services

Retail Lockbox Imaging Integrated Receivables Other Services

Pricing Other Considerations

Operational Control of Collections Lockbox Holdover Remitter Cooperation

Summary

Chapter 4: Managing Cash Outflows

Overview Concentration Systems

Mobilizing Funds Concentration System Considerations

Disbursement Systems

Regular Checking Zero Balance Accounts Controlled Disbursement Funding

Positive Pay

Positive Pay and Fraud Prevention

Other Disbursement Services

Reconciliation Stop Payments Check Safekeeping

Check Fraud Prevention

Electronic Check Presentment

Payroll

Direct Deposit Mechanics Paycards

Purchasing-Accounts Payable Cycle

Procurement Cards Other Potential Improvements

Comprehensive Payables

Payments by Check Benefits

Summary

Chapter 5: Liquidity Management

Overview Liquidity Management

Sources and Uses of Liquidity Managing Liquidity

Cash Forecasting

Cash Budgeting The Distribution Method Cash Modeling Regression Analysis Choosing a Forecasting Method

Instruments for Short-Term Investing

Government Instruments Bank Instruments Corporate Instruments Interest Rates Issues in Short-term Investing Investment Policies Passive and Active Strategies

Borrowing

Lines of Credit Other Credit Facilities Cost of Borrowing

Summary

Chapter 6: Treasury Information Systems

Overview Treasury Information Modules

The Basic Modules Other Modules

Treasury Workstations

Advanced Functionality

Internet Banking

Benefits Disadvantages

Internet-banking and the Service Providers Choosing a Treasury Information System

Step 1: Determine Information Requirements Step 2: Conduct Vendor Search Step 3: Review Vendor Offerings Step 4: Provide Economic Justification Step 5: Choose the System

Summary

Chapter 7: International Cash Management

Overview The Growth of International Business The International Treasury Environment

Complexities of International Cash Management Bank Compensation Practices

International Risk

Foreign Exchange Risk Country Risk Cross-Border Commercial Risk

Risk Management Tools

Forward Contracts Futures Contracts Options Swaps Balance Sheet Matching Leading and Lagging Letter of Credit Documentary Collections Country Risk Insurance

Cross-Border Clearing and Settlement Basic International Cash Management Tools

Electronic Banking Services Foreign Currency Accounts International Lockboxes

Liquidity Management Tools

Notional Pooling Cross-border Concentration Netting

Treasury Structures

Tax-advantaged Centers Reinvoicing Centers In-house Banks (IHB) Commissionaire Structure

European Developments

The Impact of the Euro New Euro Payment Systems

Tips for Emerging Global Treasurers

Basic Tips Intermediate Tips Advanced Tips

Summary

Chapter 8: United States Banking Environment

Overview The Role and Services of Financial Institutions Regulation of the Banking Industry

Functions of the Federal Reserve System Organization of the Fed Other Regulatory Agencies Dual Banking System

Significant Legislation

Regulation of the Industry Leveling the Playing Field Deregulation Customer Rights

Federal Reserve Regulations Impacting Cash Managers The Account Analysis

Account Balances Cash Management Service Charges

Using the Account Analysis to Review Cash Management

Collections Concentration Disbursement

The Uniform Commercial Code (UCC) Summary

Chapter 9: Bank Relationship Management

Overview Twenty-First-Century Relationship Management Transaction Banking Considerations in Bank Selection

The RFI The RFP

Issues Covered in Bank RFPs

General Issues Specific Cash Management Issues

Review of Pricing

Review of Pro Forma Account Analyses

Evaluation of the RFPs

Measures of Performance Weighted Scoring of Proposals Guidelines for Managing the RFP Process

Managing Your Banking Relationships

Service-Level Agreements (SLAs) Relationship Reviews

Summary

Chapter 10: Future Trends

Overview Trends in Collections

Electronic Bill Presentment and Payment (EBPP) Electronic Check Presentment (ECP) Direct Debits

Trends in Disbursements Banking Relationship Concerns

The New Seller's Market in Banking Capital Rationing Where Will Banks Use Their Capital? Will the Future Bring Systemic Changes?

Risk Management Control and Management of Disasters

Employees Electronic Devices and Barriers Disaster Recovery Computer Security

Organization of the Treasury Function

Centralization through Shared Service Centers (SSCs) Enterprise Resource Planning (ERP) Outsourcing Open Architecture Electronic Banking (EB)

Future Role of the Treasurer Summary

Appendix A: Useful Sources Appendix B: NACHA Formats Appendix C: SWIFT Message Types