Cash usually refers to currency and other items such as checks, money order, debit cards, and bank drafts. Controlling cash is extremely important since it is the most liquid asset and thus it is often dif ficult to prove who has ownership of cash once it has changed hands.
Cash Receipts Anytime an organization receives cash, it should prepare a receipt and keep a copy. Also, cash
should be counted and deposited promptly and regularly. It is absolutely necessary to minimize the amount of cash on hand in any organization.
Cash Payments To control cash, an organization should make all disbursements using checks and debit or
credit cards, thereby providing a record of cash payments. If an organization uses electronic debit cards, it should carefully keep track of them. If the organization uses checks, they should be prenumbered, and unused checks should be kept under lock and key.