Cash planning and control of cash is the central point of finance functions. Maintenance of adequate cash is one of the prime responsibilities of the financial manager. It is possible only through the preparation of cash planning. Cash control is also included in cash planning. Since planning and control are the twins of management. Cash planning is a technique to plan and control the use of cash. A projected cash flow statement prepared based on expected cash receipts and payments, is the anticipation of the financial condition of the firm. Cash planning may be prepared on the daily, weekly, monthly or quarterly basis. The period for which the cash planning is prepared depends on the size of the firms and management’s philosophy. Large firms prepare daily and weekly forecasts. Medium size firms prepare weekly and monthly forecasts. Small firms may not prepare cash forecasts due to non-availability of data and less scale of operations. But in a short period they may service but over a long period, they have to prepare cash planning for the success of the firm.