Sample Thesis Paper

The techniques of speeding up cash flows are important in improving the cash flows of a firm. The basic concept of efficient cash management is increasing and speeding up the cash inflows and decreasing and delaying the cash outflows of a firm. The techniques of speeding up and improving cash flows are based on this simple concept of speeding up collections and delaying payments. The time duration for collections can be decreased by various techniques which basically motivate the customers and debtors to pay cash on or before stipulated time. These techniques may involve collection points, cash discounts, lock-box systems and providing other easy options to customers to pay their bills such as online transfers, cheques and credit card payments (Gallagher and Andrew 2007).

Another area to increase and retain cash for a longer period of time is the concept of float. There are two types of float, negative float and positive float. The positive float is the time duration between the disbursement of cheque and actual cash outflow and the company can increase this time duration for higher earnings and utilising the cash. Various types of floats in the total business float can be used for a firm’s advantage. These floats include credit float, mail time float, in house processing float and bank clearing time float. The various types of floats can be manipulated to manage the economic total business float which would improve the cash flows of a company significantly (Reider and Heyler 2002).

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