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 a Bank Statement?
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?
Bank Statement Lines
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!
Complete Bank Reconciliation Process
Bank Reconciliation Process is a eight step process starting from uploading the Bank Statement to finally posting the entries in General Ledger. Learn the Eight Steps in Detail!
Automated Clearing
In automated clearing, Bank statement details are automatically matched and reconciled with system transactions. Learn how this process works and what are the perquisites to enable the same.
Manual Clearing
In manual clearing, Bank statement details are to be matched manually considering certain rules. Learn the steps involved in manual clearing of bank transactions.
Treasury Management – What?
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!
Treasury Management – Why?
Treasury has increasingly become a strategic business partner across all areas of the business, adding value to the operating divisions of the company. Managing activities that were traditionally carried out within the general finance function. Learn about the drivers for this change.
Treasury Management - Functions
Treasury management has become an specialized function. Treasury function helps in managing the Risk-return profile as well as the tax-efficiency of investment instruments. In larger firms, it may also include trading in bonds, currencies and financial derivatives. Learn about the various tasks, activities and imperatives, undertaken by treasuries in in today's context.
