Which of the following is a method to improve cash management?

Utilizing a lock box system is an effective method to improve cash management because it streamlines the collection of receivables, thereby accelerating cash flow. In this system, a company sets up a postal box that is managed by a bank. Customer payments are sent directly to this lock box, and the bank processes these payments, depositing them into the company's account. This not only reduces the time the company takes to receive and process payments but also minimizes the risk of delays and enhances the accuracy of cash flow projections.

By dealing directly with a financial institution, businesses can also gain enhanced security and efficiency in managing incoming funds. This method helps in maximizing cash on hand, ensuring that the company has quicker access to funds that can be used for operational needs or investments. Moreover, timely collections can reduce reliance on external financing, thus optimizing overall cash management strategies.

The other options, while relevant in certain contexts of financial management, do not directly address the improvement of cash flow in the same immediate and effective manner as a lock box system does.