Precisely speaking, the primary of cash management in a firm is to trade-off between liquidity and profitability in order to maximize long-term profit. This is possible only when the working capital pool. This overall objective can be translated into the following operational goals :
(i) To satisfy day-to-day business requirements ;
(ii) To provide for scheduled major payments ;
(iii) To face unexpected cash drains;
(iv) To seize potential opportunities for profitable long-term investments :
(v) To meet requirements of bank relationships;
(vi) To build image of credit worthiness ;
(vii) To earn on cash balance ;
(viii) To build reservoir for net cash inflows till the availability of better uses of funds by conscious planning.
(ix) To minimize the operating costs of cash management.