Even as the economy shows signs of stabilizing and corporate finance execs feel a little freer to breathe a (small) sigh of relief, they remain focused on cash inflows and outflows. Indeed, corporate cash balances within the S&P 500 have risen steadily over the past year and a half, so that they’re now nearing $1 trillion.

To get there, many companies have focused on the basic blocking-and-tackling of cash management – consolidating cash balances, gaining visibility into the location(s) of their funds, and paying greater attention to early pay discounts, among other strategies. Ariba, a provider of collaborative business commerce solutions, has seen a 48 percent spike in the number of early payments between the buyers and suppliers that do business through its network, along with a jump of 73 percent in the dollar value of discounts. “We’re seeing increased scrutiny of cash in the supply chain,” says Peter Lugli, senior director of working capital management with the Sunnyvale, Cal.-based firm. more

The new regs boost safety, but probably will constrain returns.

Most corporate treasurers look to money market funds as safe places to park funds that may be needed in a few days or weeks to, for instance, cover payroll or execute an acquisition. In January, the SEC issued new regulations that were designed to make the funds even safer. These regs come at a price, however: Returns are likely to be lower, says Brian Kalish, finance lead with the Association for Finance Professionals. more

Several potential legislative and administrative changes may streamline the process of importing and exporting goods.

With the World Trade Organization predicting a 9.5 percent increase in world trade this year, businesses and government agencies know that it will pay to be as efficient as possible in importing and exporting goods. However, the U.S. appears to be falling short in its efforts. The World Bank’s “Doing Business 2010” report ranked America 18th in these efforts. While not terrible, it certainly leaves room for improvement. One reason for the less-than-impressive showing: The WTO estimates the cost of exporting one container from the U.S. at $1,050. The corresponding number for Singapore is $456.

Capitol Hill appears to be noticing. Last month, Rep. John Tanner, chair of the House Ways and Means Subcommittee, hosted a hearing on “U.S. Trade Facilitation and Enforcement in a Secure Environment.” The hearing was a prelude to a Customs reauthorization bill that Tanner and Kevin Brady, R-Texas, expect to introduce by the end of the year. more

Survey shows large firms OK with higher capital reserves for banks, even if it increases their own costs.

A majority of CFOs today appear to have little sympathy for bankers’ concerns over some of the potential reforms, such as requiring higher capital reserves, now being discussed both in Washington and in Basel, Switzerland. That’s where the Basel Committee on Banking Supervision is developing an “international framework for liquidity risk measurement, standards, and monitoring.”

In responding to the proposals, some of which would require banks to hold higher levels of liquid investments, the American Bankers Association said, “The cost of available credit could be expected to increase significantly.” The Association also warned that access to credit could tighten. more

However, some of the panic has subsided.

With fears of a “double dip” recession still prevalent – 84 percent of execs participating in a recent Deloitte survey said they were concerned that the economy would sputter yet again – it’s not surprising that cash flow also remains top of mind. “It’s still a very hot topic of conversation,” says Jim Graves, senior vice president with Key Bank.

However, Graves added that his conversations with corporate clients over the past 6 months have become less frantic and more focused on the steps needed to ensure that a company’s cash flow forecasting abilities consistently measure up. For instance, more organizations are moving far-flung divisions onto common systems and procedures. That’s a shift from the pre-economic tailspin era, when many financial executives had less of a sense of urgency about ensuring that various parts of their firms took a common approach to functions like invoice tracking and approval, Graves notes: “Now, we’re seeing some delayed or deferred consolidation happening with more urgency.” Given ongoing tightness in the credit markets, CFOs and treasurers want to know, as precisely as possible, when cash is coming in and going out. more