Week 3 discussion 1 | BUS 627 | Ashford University
When it comes to controlling cash, management can use a variety of tools to ensure that money is being used properly and efficiently. Firstly, budgeting should be implemented in order to track all incoming and outgoing funds; this will allow managers to identify any areas where there may be discrepancies or areas of potential savings. Secondly, effective internal controls such as segregation of duties should also be put into place in order to discourage any irregularities or fraud from occurring. Thirdly, adequate levels of insurance can help protect against any risks associated with investing cash while also providing additional coverage in case certain assets are lost or damaged due to unforeseen circumstances. Additionally, establishing an emergency fund is also beneficial for dealing with unexpected expenses without needing to resort to borrowing from outside sources.
Management should also consider using technology like automated payments systems which enable them quickly process payments with minimal human involvement or the utilization of services like automatic bank reconciliations which compare account transactions against customer records in order cross-check accuracy and catch improper expenditures early on. By making use of these various methods companies can better control their cash flow while simultaneously minimizing losses due financial mismanagement.