What Is The Principle Of Cash Management?

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.

Cash is the most liquid currency fund. It can be used to purchase the needed materials, pay daily expenses and repay debts.

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.

So,

Theoretically, there are 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 cash flow of the account unit will be implemented.

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Second, no cash is allowed.

Cash in cash can easily disrupt the channel of cash receipts and payments, which is not conducive to effective supervision and management of cash by the bank.

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

Storage.

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.