One of the basic control in cash management is to first, identify an authorized cash handler in your business. Identification involves taking appropriate measures in hiring employees whose responsibility is basically to handle cash. Such Control Tasks as;
- Employees employment/job history check and verification prior to hiring, usually through third guarantor attestation to new applicants’ honesty and integrity.
- Further background check on the new employee to establish a follow-up procedures in event of cash loss through misappropriation, fraud or outright theft. Also to ensure trustworthiness of the employee.
- Businesses determine a cash limit or a level of risk tolerance when it comes to cash control. In most instances, security measures such as fingerprint identification on everyone to whom cash handling duties are delegated.
Other measures to protect cash include;
- To separate cash handling duties among different people. The ultimate control tip is, no one person should possess a monopoly or control over the entire cash handling process.
- Proper documentation and filing of cash operations to ensure individual employee’s accountability for cash handling, all endorsed or cancelled checks (cheques), unidentified checks (cheques), all deposits and withdrawals,etc.
- Reconciliation of cash/bank and investigation of cash differences
- Physical security measures such as fire-proof Safe box on lock, of all physical cash and other important documents, only accessible to authorized persons.
Outsourcing Periodic Physical Cash Count
Most businesses who maintain a substantial amount physical cash often outsource cash count and verification function to an independent Accounting/Bookkeeping firm to carry out on monthly. quarterly or half yearly basis, depending on client arrangements. This is an effort to further strengthen existing internal controls on cash flow management in business.
Do You Need Accounting Help?
If you want an easy program to keep your business records and recommendations on Cash handling and management, we at Fritznoble Consulting assist our clients on the best options available for them……
Consistent up to date and cleaning of accounting records for sound business decision making, may be posing some difficulties when you are preoccupied with other business functions. Is it time to consider independent professionals because of certain technical complications that could occur along the line? It could also be daunting, time-consuming procedures. Not recording correctly and poor monitoring can cause complications and confusion.
we @Fritznoble assist our clients on the best available options that suit their businesses...Reach out/ Outsource With Us… If Accounting works are bothering to you, then it’s time you outsourced your accounting and bookkeeping requirements, this will help you concentrate more on core competencies of your business; with a team of professionals to help.
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