Cash Management refers to the process of collecting, handling, and using cash efficiently. It involves monitoring cash flow, ensuring that there is enough cash available to meet obligations, and optimizing the use of cash resources. Effective cash management helps businesses maintain liquidity, avoid cash shortages, and make informed financial decisions. Key components of cash management include cash flow forecasting, bank reconciliation, and investment of excess cash. By analyzing cash inflows and outflows, businesses can predict future cash needs and plan accordingly. This practice is essential for maintaining financial stability and supporting growth initiatives.