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.
Collection Float
Collection Float is the time spent to collect receivables. Collection float is the sum total of time taken by Invoice Float; Mail Float; Processing Float and Availability Float. Explore more!
Disbursement Float
Disbursement Float is the time taken from payment creation to settlement. Collection float is the sum total of time taken by Payment Float; Mail Float; Processing Float and Availability Float. Learn more!
Cash Management - Integrations
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 - Benefits
Effectively using cash management with trade finance products brings tangible benefits to both corporates and financial institutions.Learn the various benefits of cash management process.
Introduction to Cash Clearing Process
Unravel the mystery behind clearing accounts. Learn why clearing accounts are used in finance and accounting. Learn why so many clearing accounts are defined in ERPs and Automated Accounting Systems.
Clearing – A business concept
Unravel the mystery behind clearing. Why we use clearing accounts. Find the relevance of word "Clearing" in business context.
Clearing Account
Many different accounts are used in finance. Understand the representation and nature of clearing account in context of accounting, finance and ERP Systems.
Cash Clearing Process
The Cash Clearing process enables you to track amounts that have actually cleared your bank. Till reconciliation happens the amounts are parked in 'Cash Clearing Account'.
