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.
Cash Clearing – Accounting Entries
The Cash Clearing process enables you to track amounts that have actually cleared your bank. Learn the steps and accounting entries that gets generated during the cash clearing process.
Clearing V/s Suspense Account
Suspense and clearing accounts resemble each other in many respects but there exists important fundamental difference between the two. Read more to explore these differences.
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.
What is Account Reconciliation?
Before you understand the Bank Reconciliation Process it is important to understand what is account reconciliation and why it is carried out.
Account Reconciliations– Why?
In the previous article we talked about the meaning of the account reconciliations. Now as you now the definition of account reconciliation, in this article let us see why it is carried out.
Account Reconciliation – How?
Account Reconciliation – How? Learn the three key attributes to perfom account reconciliation.
Bank Reconciliation Process
Bank Reconciliation is a PROCESS to Validate the bank balance in the general ledger With Bank Statement. Learn the bank recon process.
Differences – But Why?
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.
