Cash Management


  • Requiring Backup Before Paying Things?

    Ok so I've worked in accounting departments for ten years in 3 different companies. Typically, there is a control process in place where AP has to enter a transaction with proper backup, like an invoice, before the expense or asset is posted and a check goes out the door. Sometimes it's not a sim...

  • Cash management for FDIC security over short term cash spikes

    I work for a general contractor who receives large payments from clients each month, but then pays much of that out to subcontractors. So, for a few days to a week or so, we have a low-seven-figure balance in checking that of course substantially exceeds FDIC protection. However, there is no ...

  • Deposits at other institutions

    Dumb question I’m sorry but I’m new to my job and trying to learn everything I can. Why might a bank put their money into a different financial institution? I’m assuming for a better interest rate?

  • Tracking various colors of money

    Okay, I am going to try to describe my problem as best I can. So I have money coming in from different organizations, and each check that they cut carries a 'code' of sorts that restricts what I am allowed to spend the money on, although some money is so coded that I can use it for everything....

  • Can somebody recommend a credit card processor company that provide inmates with debit cards upon release from custody

    Currently my company uses Vantiv. However, the problem we are having is Vantiv is part of a 5/3 bank and can only establish one card per SSN. So if someone is released multiple times, they have to issue a paper check because the cards cannot be reloaded. Therefore, we are looking for a company th...

  • Am I required to provide copies of canceled checks?

    I have a contractor who is demanding I provide copies of dozens of canceled checks from 3+ years ago. The bank is going to charge me $7.50 per check. The contractor is trying to play some game, and is just annoying me. Can I require them to pay the bank fees? Can I just tell them "too bad...

  • What are some creative ways to make up for money lost from vendors lowering or eliminating early pay discounts?

    Our vendors are really getting stingy with the terms they're offering us for paying them early. Typically we get a 2% discount if we pay X days prior to the date payment is due. We have recently had several vendors either decrease or completely eliminate these discounts. We operate on such thi...

  • How Do I Recover My Money?

    I have a commercial cleaning company and I've noticed that my number of delinquent accounts is getting larger and I don't have the time to follow-up on them. When I have tried calling, they keep stringing me along and promising to pay. I want to retain my client but also need to have my invoice...

  • I want to deploy a PO process for internal expenses. My boss is reluctant indicating the company owners will not comply with the process.

    I'm trying to reduce the time I have to spend tracking down executives for approval on expenses that I am not aware of. I don't believe there should be a threshold for these costs. If we were to provide a PO requisition form and once the requisition form submitted to AP, we'd create an intern...

  • Operating capital effect on cash reserves

    My company is a NFP, 420-FTE, $29M, 10-county, publicly funded community behavioral health provider system. We provide many programs to ensure a complete continuum of care for the mentally ill and those in addiction. We have been very willing to create new programs for state and federal agenc...

  • Banking And The Cannabis Industry

    I have a client who is selling child-proof packaging to the medicinal marijuana industry. They have had a couple of banking relationships, both of which started out fine, but later the relationship was terminated by the banks at the direction of upper management. My client has been transparent ...

  • What statistical forecasting tools, models & techniques would you suggest to forecast secured cash flow

    I work in an online gambling company. In this industry, paying money to your customers in time is the most important thing, so our company needs to reserved lots of cash to run daily business transaction. But now we want to precisely forecast daily cash flow in our account based on historical dat...

  • Intercompany Loans between U.S. entities

    What are the rules regarding intercompany loans between U.S. entities (U.S. parent to U.S. sub)? I want to set up physical cash pooling in the U.S. between U.S. entities and am thinking about... - Do I technically nees to track loans between U.S. entities? If so, why? What rules govern this?...

  • International performance bond from a seller's perspective

    The U.S. company I work for deals extensively with international customers. Many contracts require us to post a performance bond against default (~10%) to ensure delivery of a product meeting the customers specifications. In the past, bank standby Letters of Credit had been used for the perform...

  • Positive Pay

    I've recently joined a company as CFO (having been venturing in other areas for awhile) and have been asked to look into a Positive Pay situation which is apparently a more recent addition to the banking institutions. Is this pretty much standard with all the banks these days? (Apparently this co...

  • CMA USA or CFA

    I'd like some advice. I currently work in banking MNC in India, specifically business banking (small and medium enterprises). I would like to go into corporate banking, but I wasn't sure if the CMA USA or CFA would be better. Any guidance?

  • Who typically leads working capital initiatives in larger companies? Accounting,Treasury, or individual departments (AR, AP, inventory replinishment)?

    I'll define "larger" as being over $500 million in revenue. So who leads and coordinates goals in working capital?: 1. The controller/accounting area; or 2. Treasury/Finance area managers; or 3. Individual departments like AR and AP responsible with direction from the CFO? 4. other Thanks

  • ACH Authorizations

    Do any of you use standing ACH Authorizations to help secure your bank accounts? Do you find it problematic or beneficial overall? One of the steps to getting this set up is to provide a list of trading partners and thresholds (if wanted). I am reviewing our historical detail and some of the trad...

  • Cash Conversion Cycle Analysis DPO vs DSO vs DIO

    Working on some cash conversion analyses for our board and management and the methods one can use to calc DSO/DIO/DPO are varied. I have seen DPO calcs done using purchasing while others use Cogs. I have seen DIO calcs done using sales while others use Cogs. Appreciate thoughts on when using purc...

  • PayPal Isn’t a Bank, But It May Be the New Face of Banking

    According to a WSJ article: "By some measures, PayPal Holdings Inc. holds more customer money than all but 20 U.S. banks. What does that say about the future of banking? At the end of March, customers of PayPal held more than $13 billion in accounts at the online-commerce company. Under U.S. law,...

  • Benchmarks/options for Working Capital financing?

    We are a $15mm - $25mm revenue technology and services company looking to spend ahead of new sales. We have an offer for a $2m working capital line based on our A/R. We probably need about $1m over 12 months then will be cash neutral. I have 2 main questions: 1) are there any other options that p...

  • Can an incoming wire transfer be considered a deposit in transit?

    A customer initiated a wire transfer on 12/30/11 but it did not post to our bank account until 1/03/12 (first banking day of 2012). Could this be considered constructive receipt and therefore included in 12/31 cash balance as a deposit in transit? Also have checks received Sat. 12/31 to be inclu...

  • Do you include Construction in progress when completing a currency reconciliation?

    Example if you are a sterling functional currency organisation and you complete a euro currency reconciliation to identify your exposure, what accounts do you include? Would you include construction in progress accounts seeing as you would not include fixed asset accounts?

  • Detecting P Card Fraud

    Have you come across PCARD fraud where the receipt is electronically altered to change a personal receipt to that of a company's expense?

  • What are your most effective capital expenditure business case tools?

    I am polling CFOs/VP Finance/FP&As for their favorite tools for capital expenditure decisions.  Specifically, how do you create the best understanding of the true business value (and risks)  and convey that to the decision-makers (CEOs and Boards)? What innovative evaluation techniques unear...