Cash Management in Business

This reflection report discusses the importance of cash management in business, including cash control, cash receipts, bank accounts, and reconciliation procedures. It also explores the concepts of cash budgeting and principles of cash management.

Running Head: BUSINESS ACCOUNTING
Business accounting

BUISNESS ACCOUNTING 2
Introduction
This reflection report is imperative to comprehend the experience of mine towards cash
management that is a major section of any business. This report could support to comprehend
many elements like cash, internal cash control types, cash receipts application, bank accounts,
and reconciliation procedure. It also depicts the concepts of cash management, cash
budgeting, and principles of cask management. In last, it demonstrates the adequacy of the
cash flows.
Reflection report
I gained my existing knowledge about the cash management, as it could be imperative any
business. Moreover, I comprehend that that cash is determined as the negotiable instruments
that might be in the form of a cheque and postal note, money, duplicates of a credit card. It
could lead to the organization for effectively operating the business and leads to get a
favorable outcome (Michalski, 2014). I also gained by understanding towards the cash
control that could be effective for the attainment of desire aim and objectives. Cash could
asset that might directly affect the overall business in the least time and cost. In addition, it is
evaluated that the organization could make security and use different policy to secure their
cash flow (Luo and Shang, 2015).
I gained my understanding of methods that are mainly considered by the organization to
control the overall cash flow of the business and reach a valid conclusion. I also gained my
understanding of the different concepts of the internal system that could lead to making the
financial decision. I also enhanced my existing knowledge towards cash receipts that might
be imperative in the management of cash and secure cash of the firm in limited time and cost
(Acosta, et al., 2016). Moreover, I observed that the organization could consider certain
factors named cheque accounts, application of electronic funds transfer, and bank statement. I
understood such factors where I comprehend that electronic fund transfer could secure money

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of the organization. It could be effective for getting a reliable result in the least time. It is also
evaluated that the main reason for using check account is that it facilitates to the organization
for internally control the system and make a reliable decision (Righetto, Morabito, and Alem,
2016). Furthermore, I realized that I improved my professional as well as personal skills that
could be crucial to meet my desired goal in the least time and cost.
Moreover, it is evaluated that organization should use the bank statement and secure their all
transaction as well as they would be capable to record all the cash transaction from the bank.
It could be effective for the cash management in long-term. I also increased my
understanding of the process of reconciliation that could also be vital in the business.
Through this, I understood certain factors that are included in the cash reconciliation named
outstanding cheque and late deposit and bank charges. I observed that accountants were
working as the decision maker of the firm. It offers many services to the organization for
operating a business and leads to get a reliable outcome. In addition, it is evaluated that there
are certain steps that are considered in the decision-making steps like goals, information,
consequences, and choose (Muthusamy, et al., 2015). Moreover, accounting is practiced by a
different organization like business, government, non-for-profit, and charities. From this
knowledge, I would be capable to do hard and smart work in the accounting sectors and
capable to make a reliable decision. I would also be capable to use economic decision with
respect to the research issue. It could be effective for the accomplishment of the desired goal
in limited time and cost (Muthusamy, et al., 2015). I also observed that the accountants of the
firm could be responsible for managing all mistakes that will happen in the business. It could
be effective for the attainment of the organizational task. I also enhanced my knowledge with
respect to equipment that will be effective for getting reliable information towards the
business function. In addition, it is examined that the accountant could also manage cash
receipts by considering the state of the bank. I also observed the manager of the organization

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could upgrade their journals of cash to capture the items with the help of statement of the
bank. I analyzed that accountants of the firm should manage with a business that is raised at
the time of reconciliation process. It is also examined that an accounting manager could rely
on the journals of cash and post ledgers (Kroes and Manikas, 2014). It is effective for the
preparing the bank reconciliation. In this week, I enhanced my understanding towards
creation components named cash budgeting and petty cash fund. I improved my experience
towards the management of cash. It would also be effective for keeping the inventory level.
In addition, I gained my understanding of the cash management values. Through this method,
I gained my understanding towards revenue collection period in the accounting receivables
(Gitau, et al., 2014). I gained my understanding of the accounts payable and keeping
inventory level. It is addressed that cash budgeting is effective for evaluating potential
receipts and payments. I gained my knowledge about the petty cash fund. It could be
imperative for me to examine the expenses towards the minor expenses. It is also examined
that different entities could be imperative for using the petty cash fund for eliminating minor
expenses and expanding the business. This knowledge is effective for improving my
professional career (Kaplan and Atkinson, 2015). From this knowledge, I would be capable to
effectively deal with the accounting issues.
Conclusion
From the above discussion, it can also be summarized that cash management could be
imperative for the organization as it facilitates to manage the cash of the company and
supported to make a favorable decision. It can also be concluded that firm should use
business strategy to maintain their manage their cash and operate the business for getting
higher competitive benefits. It can also be illustrated that an organization could use cash
budgeting method for managing the reliable decision towards the research issue.

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References
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