What Does a Cash Handler Do?

Inventory cash refers to the cash limit held by the enterprise that can be used for payment at any time and is stored in the financial department of the enterprise and managed by the cashier, including RMB cash and foreign currency cash. Inventory cash is consistent with what is included in the "cash" account in accounting. It is the most liquid asset of an enterprise, and plays an important role in maintaining the normal production and management of an enterprise. However, inventory cash is also the most easily lost asset among corporate assets. Strengthening inventory cash management is of great significance to both the enterprise and the country.

Inventory cash management

Right!

Inventory cash refers to the cash limit held by the enterprise that can be used for payment at any time and is stored in the financial department of the enterprise and managed by the cashier, including RMB cash and foreign currency cash. Inventory cash is consistent with what is included in the "cash" account in accounting. It's the most liquid company

1. Strict compliance with inventory cash limit

After the units have approved the inventory cash limit through the bank, they must strictly control the inventory cash within the approved limit, and the cash exceeding the inventory limit must be sent to the bank in time. Cash is paid with the permission of the bank that opened the account.

2. It is strictly forbidden to set up a "small vault" privately and use "white bars" to arrive in the vault.

(1) "Small treasury" refers to cash and bank deposits that are kept outside the unit's inventory without receiving expenditures and collections from the accounting department of the unit. Privately setting up a "small treasury" is an illegal act that encroaches, intercepts, and conceals the income of the country and the unit. The discipline activities provided a hotbed, which was extremely harmful. Therefore, the State Council has always emphasized that it is strictly forbidden for all units to set up "small vaults" in private.

(2) "White bar" arrival at the warehouse refers to the practice of using a note or document that does not meet the financial system requirements and approval procedures to offset the cash on hand. The "white bar" arrived at the warehouse, reducing the actual inventory cash, resulting in insufficient cash required for normal business expenses. The timely receipt and processing of various cash receipt and payment businesses could easily lead to financial management confusion. Approval of legal procedures, arbitrary withdrawal of cash will generate misappropriation, squandering, and embezzlement of public funds, etc., giving the criminals an opportunity; once the "white bar" is lost and undocumented, it will cause undesired losses to units or individuals.

3. Inventory cash of the unit is not allowed to be deposited into the bank in the name of the individual

In order to prevent relevant personnel from using public funds for private deposits to obtain interest income, and to prevent units from using public funds for private deposits to form small off-book vaults, the cash of unit income is not allowed to be deposited in banks in the name of individuals. Once the banks find that public funds are private deposits, they can If a fine is imposed and the circumstances are serious, the unit's cash payment can be frozen.

4. Strengthen security precautions to ensure the safety and integrity of cash

In order to strengthen the management of cash, except for a small amount of spare time required for working hours, which can be placed in the drawer of the cashier, the rest should be placed in a safe dedicated to the cashier, which should not be stored at will, nor should it be brought home; the unit's inventory Cash must not be mixed with private cash, nor can public loans be used for private use; to ensure security, cashiers should withdraw cash from banks, or deposit cash, corresponding security measures should be taken.

1. Use cash freely, frequent cash transactions

According to the Provisional Regulations on Cash Management, in addition to issuing wages, bonuses, and purchasing units to purchase agricultural and sideline products from individuals, and paying personal labor remuneration and scattered payments of various labor insurance and benefits, cash can be used. Transfers and settlements are made through banks, but the current situation is that the account opening unit is extremely casual in using cash to settle. Some enterprises, especially contracted enterprises, township and village enterprises, and individual and private enterprises, carry out large settlements with settlements very common. The amount is as small as tens of thousands. Hundreds of thousands, even millions, are very unsafe, and theft and robbery cases often occur.

Some professional banks and urban and rural credit cooperatives have adopted unfair competition for Dora customers and promised to enterprises that if a bank (community) opens an account, it will be convenient to use cash and ensure adequate supply. For these companies, doing business with cash is much more convenient than transfer settlement. Because some goods and raw materials are in short supply, non-cash is not available, which objectively forces the company to engage in cash transactions. Businesses need to use cash to do business, and banks want to pull companies into customers to compete for business. There is mutual demand between the two parties, causing the phenomenon that companies use cash to purchase goods and receive cash for sale.

2. Business cash is common

According to the survey, all units with cash income have a phenomenon of spending, especially some poor companies try to spend cash to avoid bank credit debt. This abnormal phenomenon provides the breeding ground for extracorporeal cash, A large amount of cash is circulating outside the bank, preventing the currency from being withdrawn, and the amount of currency cannot be effectively controlled, increasing macroeconomic control difficulties and seriously disrupting the country's normal economic order.

3. White bar arrivals are serious

The arrival of white bars in the treasury can be described as a common occurrence. Most of these white bars borrow money for the leadership of temporary entertainment, internal employees and salesmen, etc. for business trips or other tasks. Not only do the loans take a long time, but some of them are high and the number of transactions is also large. Some cashiers use the time difference to divert inventory cash for other purposes, and use white bars to offset it, and sometimes they cannot even recover the borrowed cash, thereby causing losses to the enterprise and the country.

4.No inventory cash limit

According to regulations, the account opening bank shall, in principle, approve the inventory and cash limit required by the account-opening unit for three to five days of daily sporadic expenditures. It shall be verified once a year. If the account-opening unit opens accounts in several banks at the same time, the limit approved by an account-opening bank shall prevail . But now the so-called quota approval name has been stored. In the case of long-term account opening, the enterprise is unwilling to implement the rules actively, and the bank does not go to question. The account-opening unit opens the account with long positions, withdraws long positions, and the cash in stock far exceeds the limit. For the excess part, it is never proactive and delivered to the bank in time. There is no regular or irregular inventory of cash in the company. At present, the amount of cash held by an account-opening unit exceeds the limit by several times, and by several tens of times. Some even have hundreds of thousands of cash inventories.

5. Privately set up a "small treasury", and private deposits of public funds

Savings deposits have the advantages of "withdraw and withdraw, unlimited amount, flexibility and convenience". Therefore, in order to guarantee unreasonable payment of cash, some units will deposit public funds in savings accounts in private, while banks open their eyes and close their eyes. According to a survey, of the net increase in savings deposits, some companies' private deposits accounted for about 10 million yuan, up to 30 million yuan. The problem of keeping off-account public funds commonly known as "small treasury" has been difficult to solve for many years. Although the country has repeatedly emphasized that it is not allowed to engage in "small treasuries", in reality, it has not been stopped for a day, and it has become more and more intense, showing an expansion trend. Now every enterprise, even every department within the enterprise, has a large or small "small treasury", ranging from thousands of dollars to as many as tens of thousands of yuan, hundreds of thousands of yuan. The deep impact has brought great difficulties to governance.

6. Over the past two years, open lending and borrowing of cash between account-opening units has become increasingly serious among enterprises. In addition, some small and medium-sized enterprises have not been able to obtain timely loan support, which has triggered high-interest loan lending activities among enterprises, thus evading bank cash management supervision Some shareholding enterprises use the cash raised from the share capital to borrow or borrow between the group or the subcontracting unit, and they can sign an agreement with each other. Interest is self-determined and does not need to go through the bank at all.

7.Large-scale expenditure is now indulgent

In order to keep customers in compliance with his needs, the bank does not review and control large cash withdrawals, and adopts a laissez-faire approach. Some credit card banks have opened a convenient way for cardholders to withdraw cash in order to keep the original cardholders, so that a large amount of cash flows into the society through this channel, and the degree of cash withdrawal with credit cards is expanding day by day. The purpose of credit settlement runs counter.

1. Factors of diversified economic components

Since reform and opening up, urban and rural collectives and individual economies have developed rapidly. The total output value of private, township and village enterprises nationwide accounts for one third of the total social output value, and its development objectively increased the demand for cash. The bases of private and township enterprises are in rural areas, and their raw materials and semi-finished products come from farmers. Most of these purchases are cash transactions. At the same time, many smaller private, township and village enterprises do not have fixed accounts, objectively prompting large and medium-sized enterprises to use cash when subscribing to their goods. In the mid-to-late 1980s, various joint ventures and joint ventures have also developed rapidly. With the emergence and development of joint-stock systems and joint-stock cooperative enterprises, the demand for cash has also been increased objectively. And various forms of contracting, as well as layer-by-layer contracting within the unit, separate accounts, independent accounting, independent cash receipts and payments, the demand for cash has increased significantly. All relevant departments have emphasized and focused on creating a good easing for the enterprise. The external environment neglected the necessary restrictions on the implementation of supporting systems, especially the cash management was completely relaxed.

2. Environmental factors

(1) Social and environmental factors, the proportion of cash receipts and payments in commodity transactions between enterprises has increased, and some non-cash products such as tight commodities and raw materials are not available, and the price settled in cash is cheaper than settlement through bank transfers. (2) Financial environment factors. At this stage, China's bank settlement system cannot keep up with the requirements of the development of the situation, and the long period of funds settlement is not conducive to accelerating capital turnover and improving economic efficiency. This problem, which causes enterprises a deep headache, cannot be effectively resolved, which will affect the company's compliance with national cash management policies.

3. Deviation in ideological understanding

Misunderstanding is the root cause of the vulnerability. At present, there are two kinds of misunderstandings in China's cash management work: one is that cash management is a product of the planned economy, which is not necessary under the current market economy. The reason is that the establishment of a market economy makes social commodity trading activities more frequent, and market competition is becoming increasingly fierce. Enterprises and institutions have the right to make their own choices in terms of settlement types in order to accelerate capital turnover and improve efficiency. If we continue to maintain strict restrictions on the use of cash, it will not be conducive to the full conversion of the operating mechanism and autonomy of the enterprise, and it will also be detrimental to the commercialization process of the bank itself. And most of the new non-state-owned enterprises have a very serious preference for cash use. The understanding of "money is mine and I have the power to dispose freely" is deeply entrenched. I do not understand the bank's strict management of cash payment business; the other is that cash The expansion of the settlement scope and the increase in cash input are the outstanding performance and objective needs of economic development. We do not need to make a fuss and so on. Due to these misunderstandings, banks and enterprises have slackened their cash management work, neglecting and even rejecting ideas, leaving many institutions' original cash management systems in a state of paralysis. Even if they have reservations, they are mostly just going through the action.

4. Regulatory factors

In recent years, the cash management publicity and training of the People's Bank of China has mainly targeted financial institutions, while publicity and training activities for account opening units such as enterprises and institutions have rarely been carried out. The People's Bank of China, as the competent authority for national cash management, has not fully and effectively performed its functional role. Incomplete system and ineffective measures make it very untimely to deal with violation cases in the jurisdiction. Even if they are dealt with in the end, they are generally limited to do not give examples, which is not effective. As a financial institution of state-owned commercial banks and non-commercial banks, in order to compete for deposits, solicit business, and attract customers, they will recruit enthusiasts at the cost of loosening cash management. After the enterprise implements effective wages, the social labor and personnel departments generally only maintain a single line of contact with corporate income, and rarely report the "Wage Fund Book" to relevant banks. The number of enterprise units, the total amount of wage funds and their fluctuation ranges, etc. Difficult to grasp exactly. At the same time, some collective units themselves have cancelled the Wage Fund Book. When an enterprise uses cash, the cash cheque indicates the purpose of "wage", and the bank can only recognize it.

5. Defective factors of the Interim Regulations on Cash Management

The current "Interim Regulations on Cash Management" was promulgated and implemented in 1988. After a lapse of seven years, the economic environment has changed a lot. The "Regulations" themselves have many shortcomings and need to be improved. The "Regulations" do not take into account contracting units, private enterprises, township enterprises, and individual industrial and commercial households. With the rapid development of these account opening units, the number is large, and cash settlement has continued to increase. The provisions on the use of cash are too narrow, which contradicts the actual situation of the settlement of RMB as an unlimited settlement currency for all claims and debts. The low starting point of 1,000 yuan hinders normal commodity transactions. In principle, the inventory cash limit is checked based on the daily sporadic expenses of the account opening unit for three to five days. In the case of a sharp rise in prices, today's inflation has seriously deviated from reality and is not enough for turnover. The shortcomings and deficiencies of the Regulations have led to various problems in cash management that have become more prominent along with economic development.

1. Improve laws and regulations and amend the Interim Regulations on Cash Management as soon as possible

(1) Appropriately widen the scope of cash use, such as the use of cash due to non-fixed procurement locations, inconvenient transportation, urgent production or market needs, rescue and disaster relief, and other special circumstances and the need to use cash.

(2) Adjust and increase the amount of settlement starting point, establish an adjustment mechanism of cash settlement starting point linked to inflation rate, implement flexible settlement starting point amount system, or implement fixed settlement starting point amount system. For example, the original settlement starting point amount of 1,000 yuan can be relaxed to 5000-10000 yuan.

(3) To further clarify the status and functions of central banks, commercial banks and non-bank financial institutions in cash management, and to open account-opening banks to relax account management as a preferential condition to attract account-opening units, which shall be investigated and punished by the local People s Bank, and economic penalties shall be given according to the severity , And hold the administrative leadership of the unit responsible.

(4) It is suggested that in the "Legal Responsibility" chapter, the content of "units use credit cards to withdraw cash" should be added, and corresponding penalties should be added in the "Implementing Rules".

2. Strengthen corporate cash management

Strengthen the over-the-counter supervision and review of large-scale cash withdrawals of business units, establish a registration and declaration management system for large-scale cash withdrawals, and plug the loopholes of large-scale cash withdrawals. Consider whether appropriate fees and taxes can be adopted to adjust the current behavior of large-scale enterprises. Except for wages and cash for agricultural and sideline product purchases, other costs are charged by a certain percentage of the current processing fees and current taxes. Enterprises pay more with cash than transfers, forcing companies to automatically abandon the use of cash and take the initiative to adopt transfer settlement methods.

To strengthen the management of inventory cash limit, the principle of inventory limit verification should be adhered to once a year, and the approval of a major account bank shall prevail.

Controlling the company's expenditures, cash withdrawals, and large-scale cash outlays to expand consumer spending are the key points of cash supervision and management.

Strict management of account opening and resolutely correcting the phenomenon of unauthorised account opening without payment. At present, the enterprises and relevant departments should cooperate with the central government to do a good job of cleaning up the "small treasury", and use this as a breakthrough to pay close attention to cash management.

3. Strengthen publicity, change ideas, and raise awareness

Strengthen the organization of economic workers' knowledge of market economy and financial economic reform, especially the promulgation of the People's Bank of China Law, the Commercial Bank Law, the Accounting Law and the Interim Regulations on Cash Management, and correct their thinking Recognize deviations and use correct theories to guide work.

4. Establish a fair, orderly and efficient financial environment

Make every effort to unify policies and guidelines in accordance with the goals and tasks of the market economy and financial reform, and gradually bring all financial units to the same starting line; carefully study the two sets of laws, the People's Bank of China Law and the Commercial Bank Law, which are used to manage financial disorder Competition provides legal guarantees and focuses on enforcement; the supervisory power of the central bank should take the high starting point of economic punishment as the current main means, so that unfair competitors will not get economic benefits. Dredging channels for transfers and settlements, solving the problem of unscrupulous presses, minimizing unnecessary cash use, vigorously promoting credit card and check settlement business, adopting international advanced technology to transform settlement methods, and improving and expanding credit card settlement business.

5. Improve the supervision system

That is to improve the two sets of financial and social supervision systems. 1. The central bank's ability to supervise the financial industry should be emphasized, and a mutual supervision system among financial institutions should be established. The focus is to strengthen inspections and punishments. A combination of daily inspections and surprise inspections can be adopted. The penalties should be high and can have the effect of a fine of ten. 2. The social supervision of enterprises takes into account the interest relationship between enterprises and commercial banks. Their supervisory power should be strictly enforced by the financial, auditing, supervision, and enterprise management departments in conjunction with social audit institutions. Violations of cash management regulations by enterprises should also be implemented. A heavy penalty. At the same time, the internal cash control system should be established and improved within the enterprise. Establish a reporting system for violating cash management regulations, and reward those who report merit. 3. Unified management and mutual cooperation. The People's Bank of China unified cash management. Commercial banks, industry and commerce, taxation, finance, auditing, supervision, and other departments in charge of enterprises cooperate in management, coordinate with each other, and do a good job of cash management.