Daily Cash Report » Monitor

The Purpose of Monitoring & Reviewing the Daily Cash Report

Monitor and review the Daily Cash Report on a daily basis in situations where cash management is big key part of company survival.

[box]A key part to focus on is the estimate of weekly cash deposits.[/box]

Monitoring and reviewing the cash deposits will make the estimates better and better.

A second benefit is that it communicates to the management team the cash position of the company. Since they are often authorizing the expenditures of the company they are in the best position to conserve cash.

[box]You want to spread the pain so the CFO is not the only one sweating cash![/box]

What Should Be Done if the Daily Cash Report Indicates an Expected Negative Cash Balance at the End of the Week?

If the Daily Cash Report indicates an upcoming cash shortfall, an effort will have to be made to increase your expected cash collections for the week, as well prioritizing the expected payments to your vendors by importance and determining which payables can be stretched into the future.

Who Should Monitor & Review the Daily Cash Report?

Everyone on the management team! The CFO/controller should review this daily and then distribute to the key team members. During periods of cash shortage, also share this report with operational management. They will have to make decisions regarding which vendors to pay on time and whose payments can be delayed. In addition, sales representatives may have to assist in collecting payments on past due receivables from their customers.

Often just the CEO and CFO look at cash. As a financial leader you should get everyone who has control over the cash flow to feel the pain! Remember…

“What get’s measured, get’s managed!”


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