Cash on Hand

Cash on Hand (Definition)

Cash on hand refers to the total amount of accessible cash kept by a company.

Key aspects of cash on hand include:

1. Includes physical currency, bank account balances, and undeposited checks
2. Represents the most liquid assets available to a business
3. Essential for meeting immediate and short-term financial obligations
4. Too little can lead to liquidity problems, while too much may indicate inefficient use of resources
5. Important metric for assessing a companys short-term financial health
6. Can impact a companys ability to take advantage of immediate opportunities
7. Proper management is crucial for maintaining optimal cash levels

Effective management of cash on hand is vital for ensuring a companys ability to meet its financial obligations and maintain operational flexibility.