Tips on handling large quantities of cash on-hand
If you do a search on Goolge of “handling large quantities of cash” you will find companies that you can hire to just that. However, if you own a busines that happens to deal with cash on a daily basis, you don’t need to pay someone to handle your cash! Check out the following slideshare that gives the following bookkeeping tips from our experience as certified accountants in the field.
In terms of internal controls for a business that deals with cash receipt transactions, the following are some basic small business bookkeeping tasks to help ensure your hard earned money does not go astray:
- While this might sound obvious, make sure you hire trustworthy employees. Conduct background checks and verify employment history.
- Do not allow one person to have complete control over cash transactions. Make sure two people are involved in any cash handling transaction, whenever possible.
- If you cannot make a bank deposit of your cash immediately, place all cash in a designated secure location.
- If you must keep cash on location, keep the minimum amount neededat your office by making regular bank deposits.
- Make immediate records of cash received and spent. Regularly compare the amounts reported on deposit slips to your bank statement to your general ledger.
- Investigate cash differences as soon as you discover them, because if you do not, over time, even small cash differences can add up to large losses if the source of differences is not uncovered and resolved.
LUXA Enterprises is an outsource accounting group offering accounting solutions to improve bookkeeping tasks in small and mid-size businesses in the Tulsa and surrounding areas.