If your company is managing cash efficiently, you may find that you have excess cash in your business checking account from time to time after all of your operational expenses have been paid. The question then becomes: How should you manage this excess cash so it is available when you need it and also generating the highest possible return? Liquidity management is important for growing small businesses. The key is to choose the right “parking spot” for your excess cash that provides sufficient liquidity so you can tap into funds when you need them while earning a competitive rate of return at the same time. This post will give you the upper hand on managing liquidity.