Managing Cash Disbursement

  • Payment can be made either by cash or by credit, the companies choose their options depending upon their requirements. However, many payments have to be paid in cash only (e.g. salary and wages). Managing cash disbursement in an organization is a big task as it should ensure that the company has adequate working capital available all the time.
  • The Cash Department of an Organization manages the Cash Disbursement through a bank known as CMS Bank (Cash Management Services) of the company. The CMS bank facilitates the company to make its disbursements in the following way:
    • Providing Various modes of payment like Electronic, Check, Cash, etc.
    • Optimize the check payments of the company on the same day.
    • Collecting Checks from the customers/clients on behalf of the company.
    • Ensuring various anti-fraud measures in the system.
    • Managing funds for the decentralized offices as well.
  • Services of the CMS Bank include a cost to the company but in the long run the benefit exceeds the cost and saves a lot of time for the company.
  • In a company having several decentralized offices, all of which are eligible to make payments is very difficult to manage centrally and may lead to cash deficit or unrealized cash surplus. CMS Banks manage this situation efficiently and ensure that the funds are well managed in the entire network of the company.
Join 40,000+ readers and get free notes in your email