Cash Management
Cash is a company's most liquid asset and it is very important that it is properly controlled, managed and available for the company to meet its obligations and run its day to day affairs. Controlling cash is one of the most important areas that a manager needs to focus on. Without having adequate access to cash, a company can run into problems and if proper controls are not put in place misappropriation of cash could occur. Controls are built for cash management to ensure that cash is accounted, safeguarded and reported correctly. This ensures that only authorized transactions are taking place.
In this section we will start with helping you understand the definition and concepts pertaining to Cash Management. We will discuss accounting for Cash Transactions including explaining the benefits of understanding the controls and procedures of accounting for cash transactions. We will provide you with practical understanding of implementing basic requirements of an internal control system to ensure effective cash management. Provide you with examples of common techniques employed to control cash and discuss various ratios related to cash and cash management.
We will also discuss the services generally offered by banks and third parties and utilized by larger businesses and corporations including Account Reconcilement Services, Advanced Web Services, Armored Car Services (Cash Collection Services), Automated Clearing House, Balance Reporting Services, Cash Concentration Services, Lockbox, Sweep accounts, Zero Balance Accounting and Wire Transfer. We will also discuss the cash flow and cash flow management techniques.
What is Invoice to Cash Process
In this article, we will explore the business process area known as; Invoice to Cash; Also known as I2C. Learning objectives for this lesson are: Meaning of Invoice to Cash Process; Sub Processes under Invoice to Cash; Process Flow for Invoice to Cash; Key Transactions Fields; Key Setups/Master Data Requirements.
What is Order to Cash
Learning objectives for this lesson are: Meaning of Order to Cash Process; Sub Processes under Order to Cash; Process Flow for Order to Cash; Key Roles & Transactions; Key Setups/Master Data Requirements.
What is Cash Management
The topic for this lesson is "Introduction to Cash Management Process". We start with the learning objectives for building requisite functional expertise in cash management process.
What is Cash
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.
Cash Management – Why?
Why enterprises need cash management. What is the purpose of having a well defined cash management process?
Sources of Cash
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!
Cash Management - Process
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.
Float
To understand cash management, one must understand FLOAT. Float is the most critical component in Cash Management. Learn about cash float in this article.
