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a) Cash receipts by post
- The mail should be opened by at least two persons;
- The persons involved in the mail opening should be responsible trust worthy people;
- A listing of all cash received should be prepared and the cheques crossed =payee only‘;
- The cash received should be safely kept in a safe and should be banked intact on a daily basis;
- A daily cash received report should be prepared and reviewed by a senior official.
b) Cash collected by sales men
- A daily cash collected report should be prepared by each sales man showing the total cash received from each customer;
- The cash collection report should also show the expected cash collection basing on the stock sold and the actual amount. Any variances should be explained;
- The marketing manager should also review the cash reports on a daily basis to ensure that all the stock issued for sale has been accounted for;
- All the cash and cheques collected should be surrendered to the cashier on a daily basis. This should be kept in a safe and banked regularly;
- Debtors‘ statements should be sent to the customers on a monthly basis
c) Cash sales within the premises
- An appropriate method of recording all the cash sales should be put in place. For example, the company cash install cash registers or use of cash receipts to record all the cash sales;
- The company should employ trust worthy cashiers who should under go proper training in their duties;
- On a daily basis the physical cash should be reconciled to the expected cash as per the cash register report. Any variances should be investigated and resolved;
- Cash collected should be kept in a safe and banked intact preferably on a daily basis;
- There should be adequate physical security measures such as the use of closed circuit TV cameras (CCTV) and engaging security guards.
d) Banking of cash received
- Cash received should be kept in a safe awaiting banking;
- It might be necessary to engage a security company when transporting the cash to the bank;
- Banking should be done by a person independent of the cashiering function;
- The banking hours should be rotated to reduce the security risk;
- Cash deposit slips should be prepared for all the cash banked and the amounts recorded in the cashbook.
Wilfykil answered the question on February 22, 2019 at 06:30
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Required:
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