Cash Management Practices of Integrated Resorts in Metro Manila

Abstract

The study was intended to assess the effectiveness of Cash Management Practices of Integrated Resorts in Metro Manila. The descriptive survey method was used in this study. The researcher gathered the necessary data using survey questionnaires. The data were tested at .05 level of significance. Frequency, Percent Distribution, Weighted Mean, One-way Analysis of Variance, Two-way Analysis of Variance and Ranking were employed as statistical tools. The researcher decides to use the convenience sampling technique also known as the availability sampling by selecting 232 professionals in finance and accounting in the Integrated Resorts in Metro Manila. The criteria for choosing the respondents were as follows: (1) employees who have the knowledge regarding cash management and have first-hand information pertaining to cash management practices and controls of the company; (2) have educational background and specific functions related to cash management; and (3) persons who benefited by the industry. And the only criteria for the selection of the three Integrated Resorts are the number of years of their establishment. The researcher decided to choose the Integrated Resorts which began operating for at least three (3) years. The respondents are engaged in top management, middle management, supervisorial and staff levels in their profession. Based on the findings, the Cash Management Practices of Integrated Resorts in Metro Manila in terms of Cash Planning, Cash Budget, Cash Collection, Cash Disbursement, and Cash Control were assessed “Very Effective”. The study also noted that there were no significant differences in the respondents’ assessment on the effectiveness of cash management practices of Integrated Resorts when grouped into age in terms of Cash Planning, Cash Collection, Cash Disbursement, and Cash Control. Moreover, age and educational attainment also affects the respondents’ assessment of Cash Management Practices of Integrated Resorts. Researcher suggested that in cash planning and cash budgeting, all departments should be involved in planning and projecting budgets to attain good cash flow. When projecting, don’t be excessively optimistic. Instead, they should use worst-case-scenario estimates or historical averages. Any figures should be realistic and achievable. Accurate forecasting should be based on a range of scenarios and risks so that the organization would be understanding the key drivers of the cash position. In addition, cash collections should be closely monitored with the aim of accelerating cash inflows to speed up the collecting of accounts receivables. Furthermore, cash disbursements should be also closely monitored with the aim of negotiating a reduction in cash outflows to reduce payments. Also, there must be a separation of duties between the person receiving cash and the person responsible for disbursing cash. Cash derived from collections and cash used for disbursements should not be commingled and there should be also persons responsible for the proper recording and reconciliations of all cash transactions. Lastly, further studies can be done on other areas specifically on the establishment on clear policies on the investment of surplus funds that can contribute to the company’s profitability, liquidity, and solvency.