cashcontrol

Cash control refers to the system of policies, procedures, and tools used to manage cash assets and protect them from loss due to error or theft. Its goal is to ensure accurate recording of cash transactions, safeguard cash on hand, and optimize liquidity.

It covers cash receipts, cash disbursements, petty cash, and management of bank accounts. Typical practices include counting and securing cash promptly, depositing daily, reconciling cash on hand with ledgers and bank statements, and maintaining auditable records of all cash movements.

Internal controls are central to cash control. Key elements include segregation of duties, authorization controls, physical security for cash, dual custody for tenders, and regular reconciliations. Audits and surprise cash counts help detect irregularities.

In practice, cash control is applied in retailers, restaurants, offices, and other organizations through manual procedures or integrated systems. Technologies such as point-of-sale systems, cash recyclers, lockboxes, and bank reconciliation software support efficient and secure cash handling.

Poor cash control increases risks of theft, fraud, and errors, with potential financial and reputational consequences. Effective cash control relies on clear policies, training, routine monitoring, and periodic independent reviews.