Explain the importance of cash control and make recommendations for procedures that could be implemented.

You are a business consultant providing information and advice to future small business owners. Controls are especially important with respect to cash. Explain the importance of cash control and make recommendations for procedures that could be implemented.

MODEL ANSWER

Cash control is an important factor for success of a business as it involves managing how cash is allocated as well as credit acquisition and disbursement of funds. It is xxx for business finances to be managed and budgeted as this prevents a business from failing. Cash control is important to a business in a number of ways:

1. Theft prevention. When a business is not well organized on how they handle their cash, it may lead to employees stealing from the business (Salas-Molina et al, 2018). It is xxx for dishonest individuals to notice how you xxx your funds and identify loopholes. Cash control is important in xxx fraud where an employee, customer or xxx may forge documents to steal from the business.
2. Cash control helps to save time that would otherwise be used to double check all accounts and balances. It also saves money that would be used to acquire labor for various accounting…