IntroductionProper liquidity management and efficient short-term financing are important and beneficial for a company to maintain a competitive market share, which will increase profit potential and shareholder value through share price appreciation. Cash management can be used to reduce or eliminate idle cash balances that do not generate income, using the freed up cash as a source of short-term financing through interest-earning securities. Short-term financing allows a company to secure the funds needed 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 financial manager and his company. Cash management techniques include pool/disbursement float, 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 financial manager and his company. Short-term financing methods include trade credit, bank loans, commercial paper, foreign loans, accounts receivable financing, and inventory financing. Description of Liquidity Management Techniques Free float is the difference between the recorded amount of a company's available liquidity and the amount that has been credited to the company by the bank resulting from time delays in some processes within the system banking, such as sending and clearing checks. Companies “play floating” to reduce collection times or extend disbursement dates, allowing them to have more liquidity available to use for interest-generating securities. Electronic Funds Transfer is a system that allows you to transmit and credit funds electronically without the presence of a paper check. Electronic fund transfer increases the efficiency of the banking system and reduces collection times. International cash management is a technique that allows a company to store money in countries with high interest yields. International cash management offers a company the opportunity to invest in high-yield loans that maximize profitability. Marketable securities are a technique that turns non-interest-bearing cash into interest-bearing income through Treasury bills, Treasury bills, CDs, commercial paper, Eurodollar deposits, and savings accounts. Compare and Contrast Cash Management Techniques As stated in the introduction, all cash management techniques are used techniques to eliminate unwanted cash balances that do not generate income, turning them into interest-bearing securities. This elimination of cash balances occurs through the control of receipts, or cash flows, and disbursements, or cash outflows.