As an Amazon Associate I earn from qualifying purchases.

What is Cash Flow Management in Project Management? PDF | Download eBooks

Learn Cash Flow Management definition in project management with explanation to study “What is Cash Flow Management”. Study cash flow management explanation with project management terms to review project management course for online MBA programs.

Cash Flow Management Definition:

  • Cash flow management involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the project.

    Successful Project Management by Jack Gido and James P. Clements

Cash Flow Management Explanation:

Cash flow is defined as the flow of money to or from a business. Managing cash flows are a very important part of project management. It involves checking if the customer has made enough payments so that the cost of the project can be met. Cash flows can be positive or negative. Examples of cash flows in a project are material expenses, labor cost, travelling expenses etc. An assumption regarding cash flows in made in project management which states that cash flows in faster than it is spent. The incoming cash from the customer is managed using the terms of payment with the customer. Same is the case with out-flows with an exception that the payment terms with the supplier is negotiated.

Keep Learning Project Management Explanations

What is Identifying Stakeholder?

Stakeholder is a person, an organization or a group of people or organizations that is involved in a project and ...

What is Nominal Group Technique?

When brainstorming, a large number of ideas are generated as brainstorming focuses on quantity rather than quality. These ideas must ...

What is Project Team?

When individuals from different backgrounds possessing different set of skills come together to work on a goal, they form a ...

What is Fixed Price With Economic Price Adjustment?

When two parties agree on working together, a contract binds them legally to fulfill the requirements of each other in ...

What are Problem Solving Skills?

When a project is carried out, one thing that surely happens is problems. Problem solving skills are very important for ...

What is Excellence?

Different types of projects are carried out by organizations. Some become successful while others may fail. Although failure is not ...