Cash concentration
Topic: Finance
From HandWiki - Reading time: 2 min
 | This article possibly contains original research. (August 2023) (Learn how and when to remove this template message) |
| Example: |
|---|
| You have 2 bank accounts (i.e. Bank X and Bank Y). For each of these bank accounts, you set a minimum of XXX 10,000. In the actual account, it appears X has XXX 15,000 while Bank Y has XXX 20,000. The difference XXX 5,000 (from Bank X) and XXX 10,000 (from Bank Y) will be transferred for a total of XXX 15.000 to Bank Account Z (Cash pool). This increases the possibility of using the surplus for other uses. |
 | This article relies largely or entirely on a single source. (June 2025) |
Cash concentration[1] is the transfer of funds from diverse accounts into a central account to improve the efficiency of cash management. The consolidation of cash into a single account allows a company to maintain smaller cash balances overall, and to identify excess cash available for short term investments.
The cash available in different bank accounts are pooled into a master account. The advantages of cash concentration are
- Cash control
- Cash visibility
References
 |  |
Licensed under CC BY-SA 3.0 | Source: https://handwiki.org/wiki/Finance:Cash_concentration16 views | ↧ Download this article as ZWI file
EncycloReader
is supported by the 
KSF