How Should Cash Management Be Managed?

Cash in the accounting category, also known as cash in cash, refers to the cash stored in the enterprise and maintained by the cashier, including the renminbi and foreign currencies in stock.

Here, we need to point out in particular that the term "cash", which is interpreted in accordance with international practice, refers to any ticket that can be used as a means of circulation and payment at any time, whether it is a legal tender or a credit instrument, as long as it has the ability to purchase or pay, it can be regarded as cash.

Therefore, in theory, cash is divided into broad sense and narrow sense.

Cash in narrow sense refers to the coins and banknotes owned by an enterprise, which is maintained by the teller of the enterprise as a cash in stock for sporadic business expenses.

Generalized cash should include cash in stock and all kinds of bank deposits and negotiable securities which are regarded as cash.

Our country adopts the narrow sense of cash concept.

Cash management is the management of cash collection, payment, storage and other links.

According to the Interim Regulations on cash management, the basic principles of cash management are:

First, the inventory management of the opening unit will be carried out.

Second, no cash is allowed.

Cash in cash easily disrupts cash.

It is not conducive to effective supervision and management of cash by the bank.

Third, corporate cash is not allowed to be stored as savings deposits.

Fourth, the cash receipts should be sent to the bank in time. The cash receipts of the enterprises should be deposited with the opening bank on the same day. If there is any difficulty, the deposit bank should be determined by the opening bank.

Fifth, we must use cash strictly in accordance with the expenses stipulated by the state, and the amount of settlement exceeds the starting point, and cash shall not be used.

Sixth, it is not allowed to make use of cash.

The enterprise needs cash within the scope and limit of cash provided by the state, and it should be extracted from the Bank of the bank. When it is extracted, it should be used for writing purposes, and cash may not be used for making money.

Seventh, enterprises must not borrow money from each other.

In accordance with the Interim Regulations on cash management promulgated by the State Council, an account opening entity may use cash in the following areas:

(L) wages and allowances for staff and workers.

(2) remuneration for personal services.

(3) according to the regulations of the state, various personal rewards such as science and technology, culture and art, sports and so on shall be issued.

(4) all kinds of labor insurance, welfare costs and other personal expenses stipulated by the state.

(5) purchase of agricultural and sideline products and other materials from individuals.

(6) travel expenses that must be taken by the travelling personnel.

(7) sporadic expenses below the starting point of settlement.

(8) the people's Bank of China determines other expenditures that need to be paid in cash.

Quotas refer to the maximum amount of cash allowed to be retained in accordance with the regulations.

The limit of cash in stock shall be determined by the bank in accordance with the actual needs of the account unit and the distance from the bank.

The quotas are generally determined according to the daily cash requirements of units 3 to 5 days.

Units far away from banking institutions or inconvenient pportation can be relaxed according to the actual situation, but the maximum shall not exceed 15 days.

When a unit opens accounts in several banks, the bank's inventory cash limit is determined by an open bank.

An independent accounting unit that opens accounts in a bank must check the cash limit; the subsidiary unit of the independent accounting unit, because it has not opened an account in the bank, needs to keep cash, but also to approve the cash limit. The limit can be included in the inventory limit of its superior unit. The Retail Sales Department of the commercial enterprise needs to reserve the reserve fund, which can be approved according to the business needs, but not within the unit cash limit.

The calculation method of the cash limit is generally:

Cash in cash = the average daily payment of the previous month (excluding the monthly average wage) * defined days.

Authorized cash limit is an important system of cash management.

The general procedure for handling cash limits is: first, fill in the application for approval of cash inventory limits; and then submit it.

Signing examination approval opinions and approved amounts.

After the approved cash limit is approved by the bank, the account opening unit shall strictly abide by it, and the number of daily cash balances must not exceed the approved limit.

For example, when cash is not enough, the cash can be withdrawn from the bank, and cash can not be held without the permission of the bank. The cash limit is generally approved once a year. If the unit needs to increase or reduce the inventory limit due to the development and change of production and business, it may apply to the bank. After approval, the unit may make adjustments, and the unit may not exceed the approved quota to increase the cash in stock.

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