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Effective cash and working capital management reduces an organization’s dependence on external sources of

cash. Since the financial crisis the increasing price differential between internal and external sources of cash has
made the drive towards effective cash management more urgent.
# a good summary of value added by cash management

Cash forecasting accuracy diminishes according to the timescale involved. Near term forecasting based on
invoiced sales and supplier invoices received are considerably more reliable than longer term forecasts that
more closely resemble a budget.

# I have always questioned the value of cash forecast. Here the author is saying only short term cash
forecasting has any usage.

Active working capital management is essential to optimize cash flow management and the corporate treasurer will
actively liaise with operations to that end. Accounts receivable and inventory are effectively consumers of cash.
Accounts payable is effectively cash borrowed from suppliers and so is a source of cash
# this line summarize the relationship between cash management and working capital management.