There are multiple ways a company can control cash
Rebecca Cline
There are multiple ways a company can control cash. The tree methods are implementation of a cash budget, bank reconciliation, as well as petty cash funds. Petty cash is defined as cash or currency that is kept on site to be used for immediate purchases when they are not able to go thought the check writing process (Porter & Norton, 2018). The organization I work at requires a monthly petty cash reconciliation for the properties that have petty cash. This not only allows those charges to hit the financials in the month that they occur, but also provides assurance that the funds are being used appropriately. Porter and Norton state that every bank account associated with the company should have a bank reconciliation created and completed each time there is a bank statement available (2018).Signet Jewelers has $374.5 million in cash as of February 1, 2020 and $195.4 million in cash as of February 2, 2019 (FY 2020 Annual Report, 2020). Although the February 2020 amount seems like a significant amount of cash, especially due to the increase from 2019, the total in cash is likely to go fairly quick during FY21. In January 2020, the United States was beginning to have cases of Covid 19 and realizing that there was a significant issue arising. The company has expense that are roughly $1,918.2 million per year (FY 2020 Annual Report, 2020). Although most of the Signet Jewelers’ stores were not required to be closed for the entire year of 2021, the $374.5 million in cash does not seem excessive when facing the unknown of the global pandemic. Management is responsible for establishing overall basic internal controls. The company I currently work for has many internal controls. Some of the internal controls that we utilize are proper authorizations and segregation of duties. When invoices are received at a property, the department head is responsible for coding the invoice to the correct GL code, then the Executive director has to approve the invoice and the code. The invoice is then reviewed by the business office manager and submitted to the corporate office for processing. If the invoice is over a certain amount, once it is processed, it also has to be approved by the Comptroller prior to being posted. If the invoice is a Capital Expenditure, it also has to be approved by the Regional Property Manager.Resources:FY 2020 Annual Report. Signet Jewelers. (2020, May 1). https://s26.q4cdn.com/755441662/files/doc_financials/annual/Signet-2020-Annual-Report.pdf
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