Cash Management integrates cash transactions from various sources like Receivables, Payables, Treasury and creates reconciliation accounting entries after matching transactions with Bank Statements.
Cash Management receives payment information from Accounts Payables and you can then clear and reconcile payments. You can also create miscellaneous non-invoiced transactions, such as bank charges, debits, or credits.
Similarly, Cash management gets receipt information from Accounts Receivables. Using Cash Management, you can clear and reconcile receipts and create miscellaneous (non-invoiced) transactions, such as interest, debits, or credits.
Similarly, Cash management gets investment and deal information from Treasury. Using Cash Management, you can clear and reconcile investments.
You can get cash transactions from other sources like payroll or intercompany system.
Transactions are cleared and reconciled against a bank statement; reconciliation accounting entries are created after matching transactions and sent to General Ledger.
One of the most recurring theme in global transaction banking is the increasing integration of cash management and trade finance products.
This is possible only if the organization has a well defined Centralized Treasury Management System. This brings tangible benefits to both corporates and financial institutions.
To Learn more about how treasury and cash management integration can benefit organizations, please see our video on Treasury Management Process.
Have you ever wondered what is actually a Bank Statement and why it is needed. What is the information that is available in a bank statement?
How the inflow and outflow of cash is linked to the operating cycles of the business? Learn the cash management process in an enterprize and it's key components.
What are the various sources of cash in an organization. Which sources increase the cash available with the enterprise and which sources results in outflow of the cash? Let us explore!
Introduction to Bank Reconciliation Process
These set of articles provide a brief introduction to Bank Reconciliation Process. This topic not only discusses the meaning of bank reconciliation process but also discusses how this process in handled in new age ERPs and Automated Reconciliation Systems.
Many different accounts are used in finance. Understand the representation and nature of clearing account in context of accounting, finance and ERP Systems.
Technology has enabled the treasury function by providing various solutions to manage it's complicated tasks. This article explains various types of treasury management systems available in the market.
Bank reconciliation process is targeted to validate the bank balance in the general ledger and explain the difference between the bank balance shown in an organization's bank statement. Learn the reasons for existence of differences between the two.
The terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger and includes funding and investment activities as well. Learn all about Treasury Management here!
So many codes in the lines that are there in a Bank Statement. It contain lots and lots of meaningful information that can help automated many tasks. Explore more!
Before we dive into cash management, let us fist understand what we mean by cash and what constitutes cash in context of cash management process.
© 2023 TechnoFunc, All Rights Reserved