Cash_concentration

Cash concentration

Cash concentration

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Cash concentration is the transfer of funds 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.

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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

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This article uses material from the Wikipedia article Cash_concentration, and is written by contributors. Text is available under a CC BY-SA 4.0 International License; additional terms may apply. Images, videos and audio are available under their respective licenses.