Chapter 7
Cash Management
What Is the Cash Management Process Flow?
As the company bookkeeper, you are primarily responsible for the processing of cash receipts. Here is how each of the steps in this process works (assuming that you are using accounting software, and that the bulk of cash receipts arrive in the form of checks):
Step 1 Receive checks and cash through the mail (done by the mail room staff)
1. Enter today's date on a new copy of the mail room remittance sheet.
2. Enter on the sheet for each check received the check number, customer name, the city and state from which the payment was sent, and the amount paid. If cash is received, enter this amount in the “Source if not a check” column. Enter the grand total of all checks and cash received at the bottom of the sheet. Sign and date the sheet.
3. Insert all checks and cash received, along with the completed sheet and a remittance copy, in a locking interoffice mail pouch and have it couriered to the cashier.
4. When the courier returns with an initialed copy of the sheet, showing evidence of receipt by the cashier, file it by date in a locking cabinet in the mail room.
Step 2 Prepare and issue deposit (done by the cashier)
1. Open the interoffice mail pouch from the mail room containing the daily checks and cash receipts.
2. Total all cash and checks received, and match the total to the total shown on the mail room remittance sheet. Investigate any variances.
3. Enter all checks received on a deposit slip, as well ...
