Cash management
To manage the company's cash flow is an important, daily process in all companies. The finance responsible must continuously be updated on this.
RamBase provides tools so you can monitor the cash flow and do the necessary transactions in a efficient and reliable manner.
Output from cash managements process
Overview of the company's liquidity.
Basis for the bank reconciliation.
Possibility to make corrections to errors, and deviations between the bank accounts and the general ledger.
The purpose of the cash management process is to mirror the real bank accounts, so you do not have to leave RamBase to get control over your company's liquidity and the balances of the many bank accounts you have. RamBase provides tools for managing the cash flow. How well your company takes advantage of these tools, depends on your finance setup, and your daily routines.
Tasks involved in this process
Bank account setup - A company usually has many different types of bank accounts like operation accounts, tax accounts, and investment accounts. All bank accounts have to be connected to unique accounts in the Chart of accounts.
Register incoming payments - Incoming payments can be registered either manually or automatically. If you have many customers and a large amount of transactions, you can increase your efficiency by using EDI (Electronic Data Interchange). It will decrease the risk of errors, and your accounts receivable will always be updated.
Make outgoing payments - Outgoing payments can be made either manually or automatically. Based on updated balances from the accounts payable, you pay your debt via your bank. You can increase your efficiency by using EDI (Electronic Data Interchange). It will decrease the risk of errors, and your accounts payable will always be updated.
Bank reconciliation - When the bank accounts are reconciled, you will have an overview of your liquidity. You can increase your efficiency by using EDI (Electronic Data Interchange) for your bank reconciliation.