Daily Cash Report » Monitor
The Purpose of Monitoring & Reviewing the Daily Cash Report
The Daily Cash Report should be reviewed consistently—ideally each business day—especially when effective cash management is vital to the organization’s ongoing operations and financial stability.
A critical area of focus is the projection of weekly cash deposits. Frequent review and comparison of actual cash inflows against projections helps improve forecasting accuracy over time and strengthens financial discipline.
A key part to focus on is the estimate of weekly cash deposits.
An additional benefit is that the report keeps the management team informed of the company’s current cash position. Since many in leadership are responsible for approving expenditures, their awareness is essential for making prudent, cash-conscious decisions.
Cash management should not rest solely on the CFO’s shoulders—engaging the broader team fosters shared accountability and enables more balanced decision-making.
You want to spread the pain so the CFO is not the only one sweating cash!
Action Steps When a Negative Cash Balance Is Projected
If the Daily Cash Report indicates a projected negative cash balance at the end of the week, the organization should take immediate, coordinated steps to mitigate the shortfall. These may include:
- Accelerating collections from customers, especially past-due accounts
- Reprioritizing vendor payments based on criticality to operations or contractual obligations
- Deferring lower-priority payables to future periods where feasible
These actions should be aligned across finance, operations, and sales to ensure both short-term liquidity and long-term vendor relationships are managed appropriately.
Who Should Monitor & Review the Daily Cash Report?
The entire management team should be engaged in the review of the Daily Cash Report. The CFO or Controller is responsible for producing and analyzing the report daily, but it should be shared with all relevant decision-makers, including:
- Department heads
- Operations leaders
- Sales managers (particularly during collection efforts)
Involving the broader team ensures that decisions around spending, payment timing, and cash flow are made with full visibility and shared accountability.
Too often, cash flow oversight is confined to the CEO and CFO. As a financial leader, it’s your responsibility to create transparency and empower others to act responsibly with the company’s cash resources.
“What get’s measured, get’s managed!”
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