IntroductionProper cash management and effective short-term financing are both important and beneficial for a business to maintain a competitive market share , which will increase profit potential and shareholding. value thanks to the rise in stocks. Cash management can be used to reduce or eliminate idle cash balances that do not generate income, using the freed-up cash as sources of short-term funding through interest-earning securities. Short-term financing allows a business to obtain the necessary funds to meet production needs and achieve maximum profitability. The first part of this article will compare and contrast the cash management techniques available to a CFO and his or her company. Cash management techniques include fund collection/disbursement, electronic funds transfer, international cash management and marketable securities. The second part of this article will compare and contrast the short-term financing methods available to a CFO and his or her company. Short-term financing methods include trade credit, bank loans, commercial paper, foreign borrowing, receivables financing, and inventory financing. Description of Cash Management Techniques Free float is the difference between the recorded amount of a company's available cash and the amount that has been credited to the company by the bank which results from delays in certain processes within the banking system, such as sending and clearing checks. Companies “play with the float” to reduce collection times or extend disbursement dates, allowing them to have more cash to use for interest-bearing securities. Electronic funds transfer is a system that allows funds to be transmitted and credited electronically without the presence of a paper check. Electronic funds transfer increases the efficiency of the banking system and reduces collection time. International cash management is a technique that allows a company to deposit money in countries offering high interest rates. International cash management offers a business the opportunity to invest in high-yielding loans that maximize profitability. Marketable securities are a technique that transforms non-earning cash into interest-bearing income through Treasury bills, Treasury notes, CDs, commercial paper, Eurodollar deposits, and savings accounts. Compare and Contrast Cash Management Techniques As noted in the introduction, all cash management techniques are used to eliminate unwanted cash balances that do not generate income, transforming them into interest-bearing securities. This elimination of cash balances is done through the control of collections, or cash inflows, and disbursements, or outflows of funds..