Mastering Cash Management: Protecting and Controlling Your Business Assets

🔐Cash controls are essential for protecting against theft or misuse of this highly liquid asset.

💰Cash registers are an effective tool for recording sales, securing cash, and providing receipts to customers.

📝Controlling cash receipts involves steps such as change funds, sales recording, cash verification, and safekeeping.

🧾Cash payments should be properly authorized through the use of vouchers, matching purchase orders, receiving reports, and invoices.

💼Special-purpose funds, such as petty cash, are used for small business expenses, reducing the need for frequent check writing.

What are the key steps in controlling cash receipts?

—Controlling cash receipts involves steps such as using change funds, recording sales, verifying cash, and depositing it in the bank.

How can cash payments be effectively controlled?

—Cash payments can be controlled through the use of vouchers that require matching purchase orders, receiving reports, and invoices.

What is the purpose of a cash register?

—A cash register allows businesses to record sales, secure cash, and provide receipts to customers.

What are special-purpose funds?

—Special-purpose funds, such as petty cash, are set aside for specific business needs and reduce the need for frequent check writing.

Why are cash controls important?

—Cash controls are important to protect against theft or misuse of this highly liquid asset and ensure accurate recordkeeping.

00:00Cash is a highly liquid and vulnerable asset, requiring adequate controls for protection.

00:43Cash registers are effective tools for recording sales, securing cash, and providing receipts to customers.

01:16Controlling cash receipts involves steps such as using change funds, recording sales, verifying cash, and safekeeping.

03:27Cash payments can be effectively controlled through the use of vouchers that require matching purchase orders, receiving reports, and invoices.

08:09Special-purpose funds, such as petty cash, are used for small business expenses, reducing the need for frequent check writing.