By Shilpa Mahna Bhatnagar
Unquestionably, cash is a company’s most valuable asset. Hence, maintaining and utilizing financial information is critical to any organization’s progress. Especially given the fact that business expenses have dramatically increased in response to growing needs and demands, cash management has become a burden for firms. And manually tracking and recording all those expenses is not only challenging and time-consuming but also leaves the possibility for errors. Petty cash expenses, in particular, frequently go unreported, negatively impacting the precision of business operations. This, as a result, highlights the need for a systematic and sustainable approach for cash management.
The advent of technological advancements have given birth to organized approaches of cash management, one of which is imprest management system. Companies now have a separate cash account they can rely on to cover their regular and minor expenses, thanks to the imprest management system. Also, the system has made it easy for firms to identify mistakes and disparities that raise concerns about the authenticity of cost reports. Due to this, businesses can now see their cash balances and how it is being utilized more clearly.
Importance of cash management
Finance management is absolutely essential for every organization because it enables them to maximize their savings and earning potential. Prior to now, businesses had a difficult time keeping track of and managing their spending in spreadsheets, which was not only a time-consuming effort but also susceptible to mistakes. As a result, the final outcome was faulty, which impeded the decision-making capability of businesses. However, since automated cash payment and management platforms have been developed, it has become much simpler for businesses to keep track of their spending, adopt better strategies, rein in their spending, create more precise projections, and set the appropriate KPIs.
Small expenses, in particular, often go overlooked, affecting the accuracy of expense reports. But, with the development of the imprest management system, it has now become simple for businesses to keep track of their miscellaneous expenses and successfully manage their bills.
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The best ways to manage cash in a systematic and sustainable manner
The traditional method of keeping track and recording expenses in logbooks was not only a laborious chore but also resulted in significant resource waste. However, with the advent of cash payment and management platforms, the process of monitoring and managing expenses has become more streamlined. Moreover, these platforms promote sustainable expense management, thereby facilitating a paperless management system which is beneficial for the environment as well.
In addition, these cash management platforms are very mobile in nature, making it easier for businesses to track minute expenses and maintain a tap on periodic reductions anytime and anywhere. Specifically for small expenses, petty cash management systems have allowed organizations to track their minor expenses, which were long thought to be difficult to record.
Cash management platforms: A streamlined method to expense management
Modern corporate operations have undergone a radical change as a result of technological advancements. Financial management was always seen to be a difficult undertaking, but with the advent of automated cash payments and administration platforms, the cash management process has been simplified. Furthermore, by reducing resource waste, these platforms have helped to advance a systematic and sustainable approach to expense management.
(The author is Founder of haeywa. Views are personal)