Cash Concentration

This is referred to when the transfer of funds takes place from diverse accounts into a central account to improve the efficiency of cash management. The consolidation of cash into a single account allows a company to maintain smaller cash balances overall, and to identify excess cash available for short term investments. The cash available in different bank accounts are pooled into a master account. The advantages of cash concentration are 1) Cash control 2) Cash visibility

Subscribe to our electronic monthly newsletter to receive this and other informative research. Simply leave your email below and we will place you on our monthly distribution.