Cash is a physical manifestation of financial resources. As mankind progressed through civilization, from a barter system into a currency system of economic transaction, cash became a focal point, as it became the main medium of exchange. The definition of cash from a business perspective is different from what it means in our everyday language. To an accountant, cash is the most liquid form of asset and it includes coins, currency (paper money), money deposited in banks, money orders, traveler’s checks, cashier checks and credit card deposits. Technology has enabled us to carry cash in less cumbersome forms such as ATM cards, debit cards and credit cards.
Some important concepts related to cash are cash advance, cash registers and cash flow. Cash advances are a mode to meet minor emergencies in finance, based on a short-term process of withdrawal. A cash register is a mechanical or electronic device for calculating and recording sales transactions. Cash flow is the amount of cash being received and spent by a business during a certain period of time.
Some businesses such as retail stores are required to keep a larger amount of cash on hand and the cash is used as a change fund and petty cash fund. They use the term “change fund” to refer to the pre-determined amount of cash that is maintained by a cash register clerk at the beginning of his shift. Petty cash fund means a small amount of cash that is used to pay for minor expenditures.
Most businesses receive cash through two main sources. The first source is cash receipts paid by customers for goods or services. Businesses may receive some of their cash through electronic transfer over the Internet or receive credit card payments over the phone. Cash is easy to conceal, move and steal. Therefore, businesses use an elaborate system of internal controls to safeguard and manage their cash.
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Cash Flow
10 August 2010 8:30 PM | No CommentsCash flow refers to the amounts of cash being received and spent by a business during a certain period of time. Cash flow reports are used as a financial planning tool for specific projects or businesses. A cash flow projection sets out all the expected...
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Cash Registers
10 August 2010 8:30 PM | No CommentsA cash register is a mechanical or electronic device for calculating and recording sales transactions. It has an attached cash drawer for storing currency and also prints a receipt for the customers. While operating a retail business, wherein cash transactions are high, cash registers are...
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Online Cash Advances
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Cash Advance: Pros and Cons
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Quick Cash Advance
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Business Credit Card Offers
10 August 2010 8:30 PM | No CommentsBusiness credit cards usually have a high credit limit, a low interest rate and many automatic benefits. Generally, business owners and executives are targeted for this type of card. Small businesses can also take advantage of the benefits these cards provide by extending payments and...
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Cash Advance Companies
10 August 2010 8:30 PM | No CommentsWhen payday seems far away and the bills are mounting, applying for a cash advance would seem like a good option. This is more attractive when sudden expenses crop up in the middle of the month making it tough to juggle with the existing money...
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Guaranteed Fast Cash Loans
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Fast Cash
10 August 2010 8:30 PM | No CommentsCash is the most liquid asset for a business firm. While the proportion of corporate assets held in the form of cash is very small, often between 1 per cent and 3 per cent, its efficient management is crucial to the solvency of the business...
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Quick Cash
10 August 2010 8:30 PM | No CommentsIt is common for people to have credit cards in this day and age, but they have limitations. Cards cannot be used to pay for all services. Sometimes we need cash in emergency situations. Several banks and financial institutions have recognized this problem and are...
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