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Accounting Best Practices, Fifth Edition by Steven M. Bragg Englewood, Colorado

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Implementation Issues for Cash Management Best Practices

All of the best practices covered in this chapter are noted in Exhibit 6.1, which shows the cost and duration of each item. In nearly all cases, cash management implementations are quite inexpensive and can be completed in a short time. The reason for these easy setups is that there is no custom programming involved, and no need to involve other departments. Without these two problem areas, it becomes an easy matter to install a whole range of best practices in short order. To make the situation even easier, a company’s bank is usually eager to help install most of these items, because they involve creating close banking ties, which keeps a company from moving its banking business elsewhere. A bank can also charge fees for many of these services, which gives it an added incentive to help out. Thus, cash management is an area in which a controller can enjoy great success in improving operations.

Exhibit 6.1. Summary of Cash Management Best Practices
 Best PracticeCostInstall Time
6–1Access bank account information on the Internet

6–2Avoid delays in check posting

6–3Collect receivables through lockboxes
6–4Consolidate bank ...

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