Good cash management practices should be part of a business's DNA, it has been claimed.
Research by KPMG has revealed that although 83 per cent of UK firms currently list cash management as one of their top five strategic findings, just a third have linked management incentivisation to cashflow targets.
Andrew Ashby, associate partner at KPMG, believes this is indicative of firms failing to fully commit to the issue.
He said: "Unfortunately our research suggests that best practice is not being ingrained into the DNA of companies.
"Cash is the life blood of the business but history teaches us that it is all too easily forgotten in the good times."
However, the findings did seem to suggest that cashflow management has improved in the last year.
It was revealed that 38 per cent of respondents failing to meet their targets this year, compared with 91 per cent in 2008.
Earlier this year, Deloitte stated that the recession has made cost cutting an all but "universal strategy".
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