146k views
2 votes
Explain how transfer bank accounts can help bring about effective cash management.

User Amade
by
4.1k points

1 Answer

4 votes

Answer:

If company do not use transfer bank account, it has to make all of its payment through cash or cash equivalent. This make each transaction becomes difficult to record, consume a lot of time, and possess a high risk of lost.

Conducting transaction through bank transfer is way safer and can be easily recorded into the company's accounting software.

Not only that, You can create your accounts specifically for one activity. (For example, you can make account that is dedicated to pay employees' vacation, purchase materials, etc). This make it really simple to overseen your cash outflow/inflow and make your cash management become more efficient

User Aldux
by
3.2k points