Cash_concentration
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.
This article possibly contains original research. (August 2023) |
The cash available in different bank accounts are pooled into a master account. The advantages of cash concentration are
- Cash control
- Cash visibility