Treasury work starts with a simple question: how much cash does the company actually have available today? Cash positioning answers it by gathering balances from every bank account, adding expected receipts, and subtracting payments due. The result guides decisions about what to pay, what to hold, and what to move between accounts.
Building a daily position
- Collect opening balances from every account, including accounts that rarely move, since surprises hide there.
- Add confirmed receipts for the day, counting only money that will actually arrive, not hoped-for payments.
- Subtract payments already approved and due, so the position reflects commitments, not just balances.
- Flag shortfalls early in the day, when borrowing or rescheduling is still possible.
A position built late in the day is a report, not a tool. The value is in having the numbers before decisions are made.