In our blog series "Theory: companies, goals and Cash position", we looked at the fundamental importance of Cash position for companies, entrepreneurs and managing directors. The topics of decisions and reporting were also highlighted.

Summary Theory Company, objectives and Cash position

• One of the most important secondary conditions for the continued existence of the company is the maintenance of financial equilibrium or solvency.
• We have established that Cash position is essential for the continued existence of the company.
• Decisions on the use of Cash position must be made on the basis of appropriate information.
• A lack of information or neglecting to monitor Cash position can lead to massive legal problems for managing directors.
• In this respect, the traceability of decisions in the area of liquidity management is of essential importance. With appropriate documentation of decisions, issues such as slight or gross negligence can be clearly excluded.
• If the authority to monitor Cash position is delegated to an employee, this employee is responsible for organizing and controlling Cash position.
• However, the responsibility for the continuity remains with the managing director or owner. This is particularly essential in the event of insolvency.