Cash concentration

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.

Cash concentration 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 1) Cash control 2) Cash visibility

This article does not cite any external source. HandWiki requires at least one external source. See citing external sources. Please help improve this article. Unsourced material may be removed in future.
Find sources: "Cash concentration" – news · newspapers · books · scholar · JSTOR (2021) (Learn how and when to remove this template message)

|

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Cash concentration. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Finance:Cash_concentration&oldid=403201"