5. Handling cash-electronic bank

Chapter 5



by: josavere

Under almost the entire institutionalization on a worldwide scale of the inflationary phenomenon, the necessity that businessmen learn to coexist with him, such as coffee businessmen learned to produce in the middle of the Roya (coffee leaf rust damage).

Due to the increase in prices, the handling of cash became an important topic.
It is actions characterized by the search of mechanisms that allow increasing the speed of money circulation; we almost have to think like the people of the countries with galloping inflation: the bill burns the hands, damages the safety boxes, and rots the mattresses.

The fastest the currency circulates the less risk of losing the buying capacity.
The bank, which traditionally has taken advantage of the unknown of the people in this aspect, has begun to notice the change and has entered with vigor to that market respecting the right of its client to increase the speed of the currency.

The electronic bank represents an excellent advance, but it is not within the reach of all the companies. Subsequently, we will refer to it.


  • The suitable selection of the bank.
  • Concentration in a few accounts.
  • Special agreements.
  • Use floating or retained checks.
  • Program the pays.
  • Maintain the savings accounts with special negotiations.
  • Use the system of the nocturnal consignment.
  • Open national accounts.
  • Establish good relations with its clients.
  • Handle the national check.
  • Take advantage of the experience.
  • To use the computer.
  • Use the electronic bank.

A. SUITABLE SELECTION OF THE BANK: the use of a method of points is recommended; some similar to the implemented one, granted on shares of credit (josavere). It is helpful to use the concept emitted by an examining company of risks. The complexity of the study depends on the account that we hoped to maintain; the banks, on the other hand, are competing for the money. Maintains the idea that we are clients and the businesses must be good for both parts as it bases of lasting relations. If the number average to deposit considers discharge, we must begin to study the selection of the bank, using public information.

We happened to study aspects not less important like the range of services, insisting that we needed the most in this particular case. For example, if regarding the type of business we must mobilize a lot of money in cash, the transport facilities could be a determining factor. The vicinity is another important factor because it facilitates and it reduces the time of transactions and it diminishes the risk of holdups, robberies, etc., in case that the electronic bank cannot be used.

Previously, a popular saying was very common: "there aren't banks, there are bankers"; meaning, that the relations with the banking executive were the most important. With the electronic bank the worldwide tendency, in the frame of globalization, will not be worth to be the friend of the manager for the authorization of an overdraft or to obtain a loan. The agencies in cyberspace, with virtual managers, are the following step in the evolution of the supply of financial services through technology.

In addition to this, it is important to quote that the selected bank must have as much coverage in national and international scope. In other words, at the moment for making international businesses be able to count with a bank of confidence with endorsement and guarantor.

B. CONCENTRATION OF MONEY IN FEW BANKS PROPERLY DESCRIBED: a good selection of banks, diminished the risk and consequently, the application of the diversification principle is less important. This way it is possible to have few appreciable accounts with the great advantage of being perfectly located by the administration of the bank, facilitating itself any type of operations.

What we do strongly recommend, for both practical and internal control reasons, is to adopt the policy of opening two payroll accounts, to use one each month, alternately. With the use of the two accounts, on a practical level, the monthly reconciliation of this account is facilitated, which involves a large number of drawn checks, most of which are pending collection (note that, as generally occurs, the payment it is done on the last day of the month) From an internal control point of view, it allows you to detect at a glance if, after a month, there are still some checks pending collection, which, in the particular case of payroll, is an indication of fraudulent handling by the payer or, in any case, of atypical behavior, which must be analyzed.

C. SPECIAL AGREEMENTS: it turns out very advisable to enter to
negotiate a line of credit even though it is not required, simply to have a factor of tranquility for an unexpected event as it could be an overdraft caused by a check given back by the bank, etc.

Negotiation of remittances, transfer of funds of other cities, acceptance of temporary overdrafts, references, etc., constitute an example of negotiations that must be celebrated. Great care with the remittances of the towns and groups of judges must be had, to which the banks try to reject, due to the exaggerated slowness on their payments.

D. FLOATING CHECK USE: by diverse circumstances, not always the beneficiaries collect the checks with the diligence that must be, as it explains itself widely in this article. Employing an effective mechanism of information it manages itself to know the availability of this situation and the use of the cash could be done with the necessary care so the insufficiency of funds would not be present at the moment of the presentation of the respective checks.

This type of operation is very common at the weekends and on the holidays.

E. PROGRAMMING OF PAYMENTS: the resulting payment program of the projection of the cash allows us to prioritize and determine dates of payment. Prudent handling agrees not to lose prestige.

It is of bad taste the common practice: “payments Friday after 3 p.m."
It is elegant, when acquiring commitments to have in mind the dates, using the maximum as possible, and the advantage that can offer the calendar.
As an example, we say that it is not convenient to make a purchase of merchandise
to be received on a Holly Wednesday, because we would relinquish four days unless the good is going to be commercialized or used at that time. In this case, we must program the purchase for the following month. The periods of vacations, strikes, etc., require great care.

F. TO MAINTAIN SAVINGS ACCOUNTS WITH SPECIAL NEGOTIATIONS: in certain cases payments are necessarily gathered by parts based on their quantity; by the impossibility to recover it in a single day. Let's see: let us suppose a treasury with an average of a million daily pesos. The time of Christmas comes near and the payments by legal and extralegal premiums to the personnel are worth a total of ten million. In this case, it corresponds to the man of finances to take the precautions to reunite the cash with periodic savings.

A savings account is used for it and, also, it pays monetary correction and interest. Concerning the previous thing, it is very important to study the conditions of liquidation of interests as far as date and balances so that the benefit is effective.

Another alternative could be a capitalization policy.

G. TO USE THE NIGHT DEPOSIT: much recommended in businesses where most of the income appears at night as in the case of entertainment centers in general. This way, the risk of robbery, holdup, etc. is reduced, obviously, according to the measures taken with precautions to make the corresponding operations.

H. PARTICULAR AGREEMENTS WITH THE CLIENTS: using good relations, it is possible to be solicited to them that when briefing in the national unique account and inform immediately in the treasury department of the company the availability's of cash are known opportunely, etc. These practices can be motivated through much more dynamic means like the Internet through the e-mail (electronic mail), specialized lines that calling them, would be an agile way to inform the consignment, etc.

I. TO HANDLE THE NATIONAL CHECK: these are checks that can be received or be briefed in any bank office in the country. It represents great security because it avoids having to travel with great sums of money.

of experience would be giving great knowledge about the clients, the suppliers, and other organizations to which the finance executive is related, which allows him to consider more accurately the cash flow and face difficult situations with good relations, an opportune conversation, a calm temperament, etc.

The reproachable thing is the use of irresponsible practices and bad taste like the payment of the obligations with a check of seats very difficult to make effective regarding the distance or with errors deliberately committed in its processing, etc.

K. TO USE THE COMPUTER: the extraordinary advance of computer science enormously facilitates the handling of cash.

In effect, the administration of money depends fundamentally on exact and opportune information. Nowadays, the manufacturers of computers offer programs of handling of circulating to which the adaptations required for the particular case can be done. Even more, the immense range of new services developed by the bank is possible by the virtue use of the modern equipment of computation.

L. ELECTRONIC BANK (E.B.): the service of Electronic Bank, is obtained using a special agreement that operates in a company's computer online (in real-time) connected to a central computer of the bank This method shortens the geographic distances and reduces the time, the scarcest of the resources in the enterprise world. It diminishes costs and it replaces the traditional offices with virtual ones. It is characterized by its exclusivity; direct access by means for different types of uses; own database and permanent technical assistance.

To use their services the following minimum requirements of hardware, software, and administrative are needed. The Electronic Bank is located in the intersection of three elements that have evolved in joint form and parallel: on one hand, hardware and software, by the other, telecommunications, and finally the financial services; the strongest revolution had taken place in the term of the telecommunications and in some atmospheres, related to the technology which makes this a reality.

In the cyber-society there are no checks, neither savings checkbooks, nor forms of credit request, nor receipts of payment; what it does have is millions of transactions through the network. The success will depend on the capacity of the financial organization to supply its products efficiently and effectively. With simple operations that can be of massive use because the high investments in technology get to be profitable on the basis of a high number of clients and transactions.

The electronic bank allows transactions to be made reliably by the use of three types of passwords (keys): operative, authorization, and card. It offers confidentiality because the data are sent together and compressed avoiding that information can be infiltrated. When compressing, it also diminishes the transmission cost.

By the agility and comfort that offers, it is ideal to make financial transactions from the office or the home; it reduces the inherent risks of using messengers and handling cash; it diminishes the costs of stationery and their elaboration.

In the middle of so many advantages, it offers a very serious problem: the risk of information. If this one is lost by any circumstance it destroys the reliability of the system. Also, the intersection of the line when a transaction is made, with which it is possible to do withdrawals simulating an entity.

A risk that is taken is one person in the handling of the tool that gives the possibility to detect the password; the person enters the login and without verifying that it does not have the error message the password is copied, being known by whoever is monitoring the movements.

It is necessary that all the financial organizations and most of the automatic the certificate of quality ISO 9002 This act of transcendental importance will serve as a base for accelerated development of the Electronic Bank by the confidence that instills the users and by the application in specialized transactions of titles values and general, in every type of businesses that are made in the Stock markets and the electronic commerce.


All the services have a tariff that serves as a base to calculate the volume of operations that justify such important development, in which the most important are:

a. Integral portfolio or scoring: it does the work of factoring.

b. Call Center: communication with no need to identify itself because the mechanism does it directly, offers consultations, payments, and transfers. The operations by this mean are more economic than in the network agencies. It allows us to offer services in remote places and to make operations 24 hours a day, 7 days a week.

c. Self in Express: it allows making all the operations from the address including cash transport and the enterprise exchange installed terminals in each company.

d. Interbank: connection with the Internet to execute all types of transactions by electronic mail.

e. Electronic commerce: without geographic or national borders facilitating negotiations with any place of the world, shortening the delivery problems

f. Movable terminals: terminals that can go to the place where the client is and with the apparatus consult the balance make payments and open up loans.

In summary, the handling of cash requires so much care as any
other assets and, why not say it, more than all of them because the money is lost easily regarding the moral deterioration, declared mainly in thefts, holdups, robberies, etc.

Aside from the specific cares related to the proper handling, which is only entrusted to people of proven moral solvency, a great dominion of the techniques enumerated here is required. And any other one can be named to avoid the acquisitive power or the reduction of the yield by an excess of liquidity.

Concerning the physical cares of the cash, it must be carried far safety measure, because it is the most liquid of the assets or goods of a society and, also, the fraud effect, self-loans, robberies, holdups, would diminish the liquidity situation directly.

Mechanisms for the physical care, the following ones must be mentioned, and like it is logical, others that can be contributed with the security which never will exceed:

A. CUSTODY: the care that is due to implant in the referring thing to the cash, must begin from the own moment in which it is collected, and does not end with the deposit in the bank but with its verification. It must be done by a person who reunites the conditions of honorably and responsibility, in addition to a handling policy and keeps it in a safety box preferably with two passwords, one handled by the person in charge (treasurer or accountant) and the other by a representative of the reviser.

B. PERIODIC ARCHING: practicing unexpected periodic arching; must take place at the first hour of the day) allows us to assure us if the received cash is kept and consigned in the same form in which they were received. Because it happens that in some cases appear losses or checks are cashing without some authorization, or by some cause, not all the received are deposited (exception of post dew checks), situations that come to the light utilizing the arching of the cash box.

C. VERIFICATION OF BALANCES: it is advisable, periodic confirmation with the banks and corporations of the balances to a determined date, with the purpose of CROSSING, with the auxiliary registries of box and banks.

D. BANKING CONCILIATION: emphatically, the practice of reconciling bank books with the bank statement sent by the entity is recommended, as soon as it is received. As we have said, money in banks is the balance sheet item most exposed to fraud losses; there are countless forms of theft by both internal employees and bank officials, and other criminals. Systematic and timely conciliation is an effective means of prevention and control of such crimes.

E. CONFIRMATION OF DESERVING BALANCES: the practices of one good audit demands that at least once a year the balances of the suppliers and creditors of the company are confirmed, with the purpose of not paying more liabilities and not receiving less than what corresponds.

F. TRANSPORT: when the volume of cash that is handled demands the hiring of a transporter of values, it does not have to be doubted in making it so that the risk of the holdup is diminished such as robbery or loss.

G. GUARANTEES AND INSURANCES: it is necessary that all the city employees who in some way or another handle cash present their policies of handling and fulfillment. At the moment, it is essential to take all kinds of precautions; and among them to take the insurance from the case, to diminish the risk.

H. ALLOCATION OF FUNCTIONS: for the specific case of the cash it is advisable to avoid that employee making the reception functions, deposit, and payments in a chain. He always must have interruptions that facilitate internal control, (an employee controls another one).

I. APPROVAL OF PAYMENTS: this mechanism being the last one is not less important, on the contrary, the good administration of the cash demands the immediate identification of the responsible civil employee as far as amounts, date, place, etc.

The acceptance of this responsibility must be demonstrated in the document of payment or it's on default in the supports, using code, initial, name, etc.

Copyright © 2020