Although transactions through digital media are becoming more common, cash is still widely used. For this reason, today we will talk to you about the rules and procedures for handling cash in a company.
Certainly the controls in the company are necessary, therefore actions such as numbering invoices or receipts in Excel can automatically help to control money. In turn, you must establish certain criteria for handling cash.
Rules and procedures for handling cash in a company
The relevance of cash is indisputable, but many new companies have doubts about how to manage it. Therefore, it is highly recommended to take into account certain criteria to handle cash properly.
A systematized control is necessary
Although we are talking about cash, it must also have a systematic control, knowing the basic elements of an accounting information system. The objective is to apply a system with which principles are established to keep everything in order.
All this is best established with the help of an accountant, who will indicate the objectives and characteristics of an internal accounting system. In any case, beyond the accountant, regulations and ways in which the cash will be controlled must be established.
Keeping track of cash inflows and outflows should be represented in daily balance sheets. Therefore, it is essential that the person in charge evaluates that the daily balance of the company is related to the present cash.
Even so, not everything is about the daily balance, it is also recommended that employees be instructed to write down all the movements that are made with cash. In this way, the manager will be able to evaluate these movements in a more specific way and see if there are inconsistencies.
Limits must be set
A common mistake in small and medium businesses that handle cash is that they let it accumulate. Certainly the best thing would be to establish limits when handling cash, that is, there should not be a lot of cash in the box.
Certainly cash is absolutely necessary for many circumstances, especially when it comes to small businesses. Therefore, leaving a set amount may be convenient. For this reason, analyze the amounts of cash that you think is necessary for daily expenses.
In any case, we consider that it would be best to withdraw the money on a daily or weekly basis, depending on the amount of cash that is usually moved in your business.
Deposit money in the bank
As we pointed out before, keeping large amounts of cash is never recommended. For this reason, said money should be deposited in a bank account. Certainly online transactions are much more comfortable when talking about considerable figures.
For this reason, whenever cash management is done, take to the bank those amounts that will not be used in the company. Certainly, it is much better to manage money in the bank than to walk around with physical money. The truth is that it is much safer to make constant deposits of the money that is handled in the company.
Clearly, it will be useless to deposit money if it is not managed properly, so it is recommended to know the basics to manage money correctly. This will be essential, regardless of whether you have the money in cash or have deposited it in the bank.
Be cautious regarding the cash that moves in your company
In addition to all of the above, it is very important to take the appropriate precautionary and safety measures. For example, it is advisable to manage safes or other systems with which money is protected. Although we previously pointed out that it is best to deposit the money in the bank, inevitably the time will come to require cash in the business.
It is essential that the cash that is in our business is safe at all times. In turn, it is recommended to prepare the environment with security systems and alarms. In this way, employees will be prepared for any eventuality.
Also as an entrepreneur, you must know the accounting and financial problems in companies, in order to avoid them. In the same way, keep in mind everything mentioned in relation to cash.
