This lesson examines the structures and techniques for managing cash efficiently. The ACT Diploma syllabus requires the evaluation of different cash management structures and techniques to manage cash efficiently within the business .

5.1 Cash Concentration and Pooling

Key cash management structures include notional pooling, cash concentration, zero balance accounts, and shared service centres . These structures are essential for optimising liquidity across the organisation. The ACT syllabus covers how the treasury function supports the achievement of corporate objectives through effective cash management .

5.2 International Cash Management

International cash management requires addressing the complexities of multiple currencies and jurisdictions. The syllabus covers techniques to maximise cash opportunities and improve operating profit in restricted markets and operating practices, alongside cultural differences and local terms and conditions .

5.3 Contemporary Developments and Insolvency

The syllabus also addresses corporate insolvency and contemporary developments in cash management, including the evolving role of treasury . The CTP exam specifically covers cash pooling and concentration as techniques for managing corporate liquidity .