Cash Management and Accounting Treatment

Running head: BUSINESS ACCOUNTING
Business Accounting
Name of the Student:
Name of the University:
Author’s Note:

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BUSINESS ACCOUNTING
Table of Contents
Cash Management and Accounting Treatment................................................................................2
Application and Importance of the Topic........................................................................................2
Challenges faced during this Assessment........................................................................................3
Measures to Improve my Learning..................................................................................................3
Application of the Concept in future Topic.....................................................................................4
Reference.........................................................................................................................................6

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BUSINESS ACCOUNTING
Cash Management and Accounting Treatment
Accounting is subject which requires precision and accuracy in matching entries and
balancing various ledgers and trial balance. There is various topic which have to be covered in
order to master the subject and recently I came across a topic which forms an integral part of the
accounting process which is cash management (Balance et al. 2015). From the point of view of
business, no business can survive without having appropriate cash balance with them and it is
also a known fact that any new project would require proper cash balance for financing the
project in the first place. Therefore, it is clear to me that cash balances form a major part of the
financial records of the business.
Application and Importance of the Topic
The importance of learning the cash management in accounting process is mainly
because it is a link with all purchases, sales, income and expenses which have been undertaken
by a business during a financial year.
In order to learn and get used to the treatments of cash balances, it is important to identify
the nature of the account which is a real account. I learned that after identifying the nature of the
account we can apply golden rules to the same and appropriately deal with various cash related
transactions. I had to learn the treatments and posting requirements which is necessary in cash
book which mainly records all cash transactions (Fourie et al. 2015). The trick which is
associated with cash book which I learned is that all entries are on cash basis which in simple
words means that only those transactions are to be entered for which cash is either received or
paid. The cash book is an effective way for managing the cash and I figured that I can also apply
the concept in saving and maintaining my pocket money in a more appropriate manner. In