Ashford University| BUS 627 | Ashford University
Management can utilize a number of tools when it comes to managing cash. This will ensure money is used efficiently and effectively. Budgeting is the first step to implement in order to keep track of all funds coming and going. This will help managers identify areas that may have discrepancies, or where they can make savings. Second, to prevent any fraud or irregularities from happening, you should implement internal controls like segregating duties. In addition, insurance coverage can protect you from the risks of investing in cash and provide additional protection in case your assets get damaged or lost due to unforeseeable circumstances. Establishing an emergency fund can also be beneficial to deal with unplanned expenses, without having to borrow from external sources.
Management can also use technology such as automated systems for payments, which allow quick processing of payments without requiring much human intervention. They could even utilize services like automatic reconciliations with banks that compare the transactions to customer records and cross-check their accuracy. By utilizing these methods, companies are able to better control cash flow as well as minimize financial losses.