Reflective Learning Journal on Cash Management and Budgeting

The paper covers the major topics that are related to the cash management that are cash, internal cash control types, cash receipts, bank accounts and others. In addition to this, the explanation for the cash management and budgeting enhance my skills.

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Introduction
The aim of the paper is to conduct the reflective learning journal which is imperative to
comprehend the skills and knowledge that I attain in the lecture of cash management which is
one of the important topics of cash management and budgeting. The paper covers the major
topics that are related to the cash management that are cash, internal cash control types, cash
receipts, bank accounts and others. In addition to this, the explanation for the cash management
and budgeting enhance my skills.

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Reflective learning Journal
In the weekly lectures, I learnt about cash management and its vital role in the organisation. The
cash management majorly includes money, duplicate of the credit card, negotiable instruments
which are easily accepted by the company (Gitau, Nyangweso, Mwencha and Onchangwa,
2014). Further, I enhanced my skills by understanding the way through which companies control
the cash. The organisations consider cash as their one of the important assets which can affect
the operations of the company. I understood that the control of cash is linked with the
organisation as it needs a good internal control system for handling cash and recording cash
transactions. It has been observed by me that the control of cash can also affect the financial
decisions of the company. I gained the knowledge that it is essential for the companies to control
the cash receipts. Moreover, the company gets the cash receipts in different forms which include
mail, cash sales and short cash.
In addition to this, I enhanced my skills that cash management also includes cash payment done
by the companies which are needed to be controlled by the company. According to my view,
cash receipts directly affect the cash payments done by the company. I attain the knowledge that
control of cash payments can be done by the company by approving invoices for the payments
and by signing the cheques which also include the approval of electronic transfers.
Further, in the topic of cash management, I learnt the concept of the bank reconciliation in which
I understood that companies make use of the bank statement and also secure their all transactions
that help them in taking the long-term decisions. I got the learning to enhance my knowledge for
the process of the bank reconciliation that is followed by most of the company. Moreover, there
are certain factors that are present in the bank reconciliation which majorly includes outstanding

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cheque, late deposits and bank charges. The procedure of the bank reconciliation majorly
includes the checking of all the items and errors from the last reconciliation and to compare
(Kaplan and Atkinson, 2015). I understood that this procedure is majorly followed by the
accountant of the company. The procedure does not end over here as further, it involves the
update towards the cash journal for items that are captured with the help of the bank statement, it
includes dealing with the errors, total cash journal and post to ledgers and preparation of bank
reconciliation.
In the cash management, I found that petty cash fund is a concept which also plays a vital role
for the companies. I enhanced by knowledge by learning the concept which says that petty cash
fund is prepared by the companies with the motive to ignore the expense and inconvenience that
is faced due to writing numerous cheques with the motive to cover the negligible expenses with
many entities that have a petty cash fund (Pilbeam, 2018). Moreover, the petty cash funds can be
used by the organisations in the form of the petty cash voucher or receipts. This shows that cash
payments can be affected by the petty cash fund. Further, I enhanced my knowledge for the cash
budgeting and the need of the cash budgeting in the organisation. Cash budgeting contributes in
projecting the future receipts and payments of the companies. In addition to this, I enhanced my
skills with the knowledge that cash management principles. The principles of cash management
are must for the companies to be followed while managing the cash (Trotman and Carson, 2018).
Thus, this can be said that the accountant of the company needs to be aware of the cash
management principles. All these knowledge and learning will definitely contribute in improving
my skills when I will able to apply these in my career profession.

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Conclusion
In the end, the above discussion shows the important and concepts that are associated with cash
management and budgeting. It can be concluded that the companies should make use of the cash
management for the effective management of liquidity of the company and this will make them
to take the right decision for the company. Moreover, the organisation can use the cash
budgeting method for taking accurate and reliable decisions.

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References
Gitau, B.N., Nyangweso, G., Mwencha, N. and Onchangwa, G.A. (2014) Influence of cash
management practices on the financial performance of agribusiness enterprises in Kenya.
International Journal of Social Sciences and Entrepreneurship, 1(12), pp.260-270.
Kaplan, R.S. and Atkinson, A.A. (2015) Advanced management accounting. PHI Learning.
Pilbeam, K. (2018) Finance & financial markets. UK: Macmillan International Higher
Education.
Trotman, K., and Carson, E. (2018) Financial accounting: an integrated approach. AU:
Cengage.