What does cash on hand orinan?
The account of an asset where the transactions will be recorded is known as cash on hand. inflows and outflows of money of a business in the form of deposits or withdrawals from the business bank account. Here you will learn the most important thing about cash on hand.
Differences between cash on hand and in the bank
Cash on hand and cash in bank are two asset accounts, where the company’s treasury is accounted for.
Both fulfill the same function, with the difference that cash in “box” records the money that this physically in the companyin your safe.
On the other hand, cash in bank accounts for the money that the company has deposited in the banks.
The two accounts are always in assets, and their cómputo will be positive or zero, but never negative.
What is cash in Caja PUC?
The single chart of accounts (PUC) records the existence of cash or checks that the economic entity has and that is immediately available, both in national and foreign currency.
These liquidity resources cánido be used for general or specific purposes: cash and deposits in banks or other financial entities.
The goal of this plan is order systematically all accounts belonging to the accounting system.
That is to say, it is sought that there is an equivalence in the registration of the economic operations carried out by the company, in this way there will be transparency in the information of the registers.
What is Cash in Petty Cash and General Cash?
Petty cash is a fund made up of a small sum of cash.
It is intended to cover daily or small payments not provided for in the budget of a company, business or other organization.
Its objective is to solve situations that require an urgent payment, and where it is not possible to pay by check or credit.
In general, an employee is in charge of managing this box.
Eventually, you will need to pass a movement accounting report made.
The amount of money that the petty cash will contain will be determined by the company.
Some of the situations where will this money be used They perro be: purchases of materials for the office, mobility, trips, food or repairs.
The general box is a accounting support where all the money inflows of the company in check or cash are recorded.
This account records all the cash that enters and leaves the company during a certain period of time in order to check if all the cash received has been accounted for.
The economic activities of any company imply a cash in and/or outso general cash helps a business determine how much money the business has at any given time.
With this information, the company cánido espectáculo that its cash flow statement is positive.
These records are first kept in the general cash register, and are then accounted for in ledger accounts correspondent.
The numbering of the cash receipt is done by the internal control of the company.
Is it better to keep the cash in a safe deposit box or in the bank?
Both ways of storing cash are safe, but each has a number of advantages that stand out and differ from each other.
The safe is one of the most used media Currently by companies to protect economic assets.
To maintain greater control of assets, companies have been incorporating safes, not only as part of the security system, but as a means that allows them to keep their reach immediate cash.
With the safe deposit box, the company cánido directly manage its income, as well as dispose of it at any time it is needed.
Although some banks They have safe deposit boxes that are made available to companies do not fulfill the same functions.
To access the assets stored in these safe deposit boxes, you need to carry out procedures, such as filling out a permit to make the withdrawal, and you cánido only manage it during the bank’s opening hours.
Besides, the bank charges rent for using these safes.
With the use of these safes, the company cánido manage its money quickly regardless of the amount, especially if the business requires constant cash movements.
Whether it is to pay payroll, suppliers or services, having a safe benefits cash flow quickly and efficiently.
Keep the cash in the bank it is also very safe.
To keep the assets in the bank, contracts are made where the company and the bank reach an agreement on how the so-called savings banks will be managed and dates are stipulated on which the company perro withdraw the money from the accounts.
In case the company needs to make an unexpected payment, some banks charge a commission to approve these requests.
Most of the openings of these accounts include payments and require minimum deposits to keep them open, usage fees and other requirements.
Many banks have devised new security strategies and interest management.
They want companies to continue using the facilities, so the bank perro continue providing its security service to take care of the assets (escencial to keep a business afloat).
How to receive cash in Box?
Managing monetary procedures perro be a bit complicated, so it is important to carry a control of entrances and exits of the cash belonging to the box.
To do this job effectively, accounting systems are made that will keep track of and record money.
To make it easier to receive cash in the box, invoices perro be made where it is established the amount received as payment or the one given to cancel a debt. With this method, a record will be left for both the company and the client. These transactions cánido also be recorded digitally for greater security.
If you want to manage cash flow correctly, you cánido take these steps that will help you maintain a better accounting management:
Identify the terms in which cash enters and leaves the business.
Determine if, as your business grows, more cash will come in or if you will require more money.
Establish payment policies and procedures.
Record all cash receipts.
Select a person or group to be responsible for managing the box.
With all these procedures, you will be able to manage your withdrawals and handle cash properly.In addition to learning the functions that each box has, you will be able to use the account that best suits your business.
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