is a current asset so it measures a companys liquidity or ability to cover

Is a current asset so it measures a companys

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is a current asset, so it measures a company's liquidity or ability to cover short-term obligationswithout additional cash flows. Practices for implementing AR are:Develop a collection planDocument your collection processLog all charges and expenses concurrentlyIncentivize early payments by offering discountsBuild and maintain relationships with clientsHave a plan in place to always get your payments.f) CashmanagementIt is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company's financialstability. For individuals, cash is also essential for financial stability while also usually considered as part of a total wealth portfolio.Managementofcashis the responsibility of the company treasurer. A company can improve its chances of having adequatecashby followingfive basic principles of cash management, i.e.:reducing average collection time for receivablespaying accounts payable at the last possible (advantageous) momentkeeping inventory levels to a minimuminvesting surpluscashand planning for capital expenditure.g)SecuritymeasureSecurity measures are taken as a precaution from theft or espionage or sabotage. Security measures should be taken in to minimize or prevent such criminal acts. For the safety or employees, customers and the business, security measures mentioned below should be taken under consideration:Invest in a building security systemEmployee education and trainingIncorporate a System of Multi-Layer SecurityUpdate Your Systems, Stay Up to Date on MaintenanceInvest in Protective Software and FirewallsPerform Frequent Security Audits
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Have Strong Communication Strategiesh)BankingproceduresWhen dealing with cash, banks and accounting, there is several important procedures to follow.It is a set of instructions that any stakeholder, including new members of the committee or staff, can use to find out exactly: what tasks need to be done; who will do these tasks; and who will ensure the tasks are done properly.Each morning, the funds received from yesterday's trade should be removed from the safeand transported to the finance department or other area responsible for banking. Always ensure that you use the correct security measures when transporting cash. Each cashier'senvelope should be opened and the amount in the envelope should be ticked off against the cashier's reconciliation. Any variances should be noted and discussed with the relevant staff member and/or their manager. some of the banking procedures are: determining your current financial situationdeveloping financial goalsidentifying alternative courses of actionevaluating alternativescreating and implementing a financial action plan, andrevaluating and revising the plani) RevenuesystemsIt refers to the way that a company generates income and how it travels through the company's accountingsystem. An accounting department provides policies and procedures as well as documents that depictsystemfunctionality and its requirements for maintenance.
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