The Bad Check Notice Template deals with redeposited checks. In the event a redeposited check is returned or if sufficient funds do not exist to cover the check, the Credit Manager should contact the issuer by phone to report the problem to discuss how the matter will be resolved.
Issue a formal notice, CSH103-1 BAD CHECK NOTICE, via certified mail with a return receipt requested to ensure the customer has received the notice and understands the seriousness of the matter.
Normally, when a check is redeposited more than once, the customer will be assessed a handling fee. Any exception to this rule must be granted in writing by the Accounting Manager.
The Bank Account Reconciliation Report Template helps ensure the accuracy of the company’s bank account records by proving the monthly balance shown in the bank’s Account Register. After receipt of the monthly bank statement, including cleared checks, deposit slips and any other transactions; the Controller should prepare the monthly bank reconciliation and have it carefully reviewed by the CFO.
In the computerized environment, the accounting system may provide an automated bank reconciliation task. This task is generally selected once a month in conjunction with receiving the month end bank statement.
After the account-reconciling task is successfully completed, a report is provided which shows the reconciliation process, including outstanding checks and deposits in transit. The actual format will vary depending on the accounting system, but in general, will contain the same information as shown in CSH107-1 BANK ACCOUNT RECONCILIATION REPORT.
Print out the full (not a summary) report, staple it to the applicable bank statement, and file the result as an important control feature. This will document that the bank statement has been successfully reconciled.
Bank Account Reconciliation Report Template Details
The Bank Wire Instructions Guide Template applies to customers who are sending or receiving wire transfers and the financial institutions which process these requests. You should ensure proper procedures are followed when processing wire transfer requests.
If a customer prefers to pay by wire transfer, A/R should send them CSH104-1 BANK WIRE INSTRUCTIONS form. Upon the bank’s receipt of the wire transfer, the bank may create a wire transfer notification. Normally these are mailed but many banks may also provide notification via e-mail, phone, fax, or via an online banking interface. The bank notification serves as documentation that the money has been received.
The Cash Deposit Log Template helps establish the procedures to be followed for receiving, applying, and depositing cash receipts. Collect all cash and checks and prepare a bank deposit slip for deposit in the company’s authorized bank at the end of each day. A deposit ticket should be prepared for each cashier station or a combined ticket for several funds.
Place a duplicate copy of the deposit ticket and collected cash into a cash bag for transport to the bank. Deposits should be made no less frequently than daily. If the deposit cannot be made immediately, deposits should be stored in a secure area for later deposit.
Extreme care should be taken to protect the safety of the person making the deposit and the deposit itself. Actions to be considered are, making deposits only during daylight hours, using random deposit times and different routes to the bank, and assigning two people to make deposits.
The deposit amount should be entered into the accounting program and then recorded on the CSH102-1 DEPOSIT LOG. The original deposit ticket should be stapled to a Daily Deposit Report generated from the Accounting program and filed accordingly.
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Make Cash Processes Easier
Cash management (may be a part of treasury operations) includes management of an enterprise’s cash holdings. The following procedures are designed to help ensure that all cash requirements are met and that implemented controls are effective. The company may also be required by law to show outsourced functions, like cash management, are under control.
This Cash Management Policies and Procedures Manual was developed to assist organizations in preparing a Standard Operating Procedures (SOP) Manual for any industry or business size. It can be custom tailored to fit one’s individual company concerns and operations. The manual covers common cash procedures that include dealing with cash drawers, bank checks, wire transfers, and petty cash accounting.
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The Check Request Template applies to all manual check requests. Whenever an employee requires a manual check to be issued, such as picking up items or for cash on delivery items, a CSH106-1 CHECK REQUEST form should be completed with all pertinent information and required departmental approval.
If a check is to be mailed directly to the vendor, any applicable documentation such as order forms, etc., should be attached to the form. The form should then be forwarded to the Controller for check preparation and signature by an authorized check signer.
The CFO receives all approval paperwork and should prepare and maintain a file record of all authorized check signers and CSH105-1 CHECK SIGNING AUTHORITY LOG. The Check Signing Authority Log Template should be kept current of all individuals and their status to sign checks as soon as their status changes. The log should contain the following information:
Recipient name/position or title
Authority start date
Authority end date
Maximum expenditure authority level
The President or the Board of Directors may revoke check signing authority. Any person who is no longer entitled to sign company checks will be notified in writing. The chief financial officer will oversee the proper notification of the company’s banks whenever authorized signature changes are made. All changes to authority should be recorded in CSH105-1.
The Daily Cash Report Template is used by cashiers to account for all of the cash and cash equivalents collected in order to close out their cash drawers at the end of a day, shift, or open period. Totals are counted for Opening and Closing amounts of cash, all credit card charges, and invoices. Each report must be signed by the cashier. Upon beginning a shift, each cashier should count the beginning balance of their cash drawer and enter the totals onto CSH101-1 DAILY CASH REPORT.
At the end of the shift, in the presence of the sales manager, the cashier should count the cash drawer and enter the totals onto CSH101-1 DAILY CASH REPORT showing the amount of the opening change fund or cash drawer, the cash receipts collected, refunds, or credits granted and any cash payouts made. The settlement sheet should be compared to the cash register tape and any overage/shortage documented. The cash register “tape” will either be the tape in the register or a printed report from the register’s printer.
A summary of credit card transactions or Batch Report is also included on the DAILY CASH REPORT, since credit cards are simply another form of tender. The actual end of day closing routines for credit cards will vary, depending on the credit card merchant account and verification software. This type of report is always a sub-total of each day’s transactions. It verifies sequential integrity and ensures that all transactions recorded through the system are accounted for. The cashier will then sign the reconciled DAILY CASH REPORT and submit the settlement sheet and collected funds to the Cash Manager. This report should always be available and subject to review.
The Petty Cash Accounting Journal Template, the cash box, and all petty cash transactions should be maintained by the Cashier. The petty cash fund will be set up in the amount of $100.00 for authorized out-of-pocket expenses and advances for minor business expenses.
When an employee requests a petty cash draw, the Cashier will record the following in the CSH108-1 PETTY CASH JOURNAL:
The date of disbursement;
Voucher number (see Note below);
Name of the payee (employee) receiving the advance;
Reason or description for the draw/disbursement; and
NOTE: If there is no voucher, the Cashier must write a unique, identifying number on the receipt or record the transaction on a slip of paper.
By the end of the following business day, the employee should turn in all receipts and any change to the Cashier. The Cashier completes a petty cash voucher and attaches to it any receipts. The Cashier should submit the current CSH108-1 PETTY CASH JOURNAL paperwork, with itemized descriptions of expenses and/or receipts, to the Controller
The Controller should audit the paperwork submitted by the Cashier and resolve any discrepancies. When there are no discrepancies, the Controller will approve the Petty Cash Journal Template and the check request for replenishment. The Controller should issue a check in the amount of the reimbursement to the Cashier, who is responsible for cashing the reimbursement check at the company’s bank in order to replenish the cash box.
The Petty Cash Procedure helps outline the disbursement and reimbursement of petty cash. To facilitate minor business expenses, a petty cash fund will be available to employees. This procedure applies to all employees of the company. (6 pages, 586 words)
The Cashier will maintain control of the cash box, Petty Cash Journal, and all petty cash transactions. At the end of each month, or whenever the Petty Cash fund drops below a balance of $20.00, the Cashier will complete a Check Request for reimbursement of cash. The Controller and Cashier should meet periodically (e.g., quarterly) to review Petty Cash disbursements and reimbursements against planned (budgeted) figures, as well as discuss discrepancies and the reasons for them.
Petty Cash Responsibilities:
The Cashier maintains control of the cash box, petty cash journal, and all petty cash transactions.
The Controller audits the cash box, petty cash journal, and all petty cash transactions paperwork submitted to resolve any discrepancies found.
Outgoing wire transfer requesters must complete the Wire Transfer Request Template in order to complete the wire transfer request. The form requires:
Complete sender contact and bank information (Name, city, state, phone, account number, and ABA number of the bank that will be sending the wire).
Complete beneficiary contact and bank information: Name, city, state, and ABA number of the bank that will be receiving the wire.
The Controller must approve all wire transfers and should sign CSH104-2 Wire Transfer Form. The CFO and Controller must both approve all wire transfers over $10,000 and should both sign. Wire transfers should originate from a checking account. FRB Reg D. establishes limits on transfers from savings or money market accounts but there are no limits on transfers from checking accounts.
To ensure your accounting system’s integrity, no one person or employee in your organization should enter invoices, select payment invoices, print and sign checks.
The Check Signing Authority Procedure outlines “dollar limits” and check signing authority processes to maintain your company’s maximum check safety. The Check Signing Authority Procedure applies to the president and CFO of your company. (6 pages, 712 words)
While a hired accountant, office manager, or accounting clerk may be responsible for entering bills, paying bills, and printing out checks, all printed checks and related documentation should be presented to a second individual for signing. No one person or employee (other than perhaps the owner) should be allowed to enter invoices, select invoices for payment, then print and sign checks. At a minimum, this process requires at least two individuals to ensure the integrity of the accounting system remains intact.
For back-up purposes, it is advisable to have at least three check signers authorized for each checking account. One should be the owner, President or primary signer and the other should be the CFO or secondary check signer. The third should be a back-up signer. The back-up signer should be a trusted individual but not necessarily an employee. It could be a board member or another principle in the business. A back-up signer will ensure continuing operations in case both the primary and secondary signers become incapacitated for any period of time.
Check Signing Authority Responsibilities:
The President is responsible for adding and removing check signing authority.
The CFO (Chief Financial Officer) is responsible for managing the check signing authority process and alerting all individuals and banks of any changes to authority.
The Bank Account Reconciliations Procedure outlines monthly bank statement reconciliation practices to ensure the accuracy of your bank account records.
The bank statement reconciliation procedure demonstrates how to prove out your monthly balances in the bank’s account register. The Bank Account Reconciliations Procedure applies to all bank accounts maintained by your company. (8 pages, 1845 words)
Errors or omissions can be made to the company’s bank account records due to the many cash transactions that occur. Therefore, it is necessary to prove the monthly balance shown in the bank account register. Cash on deposit with a bank is not available for count and is therefore proved through the preparation of a reconciliation of the company’s record of cash in the bank and the bank’s record of the company’s cash that is on deposit.
Bank Account Reconciliations Responsibilities:
The CFO (Chief Financial Officer) is responsible for review and approval of all reconciliations.
The Controller is responsible for reconciling all checking accounts.
Bank Account Reconciliations Definitions:
Batch – All of the day’s credit card transactions are collected into a “batch” of transactions. The batch is closed, usually at the end of the day, and the result is submitted to the merchant processor as a single “batch”.
Settlement – The processor clears the credit card transactions in the batch and the result is “settled” to the designated bank account. Settlement varies by Credit Card Company but usually occurs in 2-3 days after a batch is closed.
Processor – The processor is responsible for authorizing credit card transactions and settling each batch. The processor is also the company that one must interface with on all discrepancies or “chargebacks.”
Chargebacks – A chargeback occurs when a customer (cardholder) disputes a charge that appears on their monthly credit card statement. If the dispute cannot be resolved, the transaction is charged back to the merchant. The processor charges the merchant and returns the cardholder’s money.
Give your customers and vendors additional payment options by ensuring proper processing of money transferring requests.
The Wire Transfer Procedure explains how to handle wire transfers with special care and accuracy to prevent loss to your company or your customer. The wire transfers policy enumerates the responsibilities of the controller, CFO and accounts receivable department. (8 pages, 965 words)
Wire transfers are processed the same as a check in accordance with the cash receipts and deposits procedure. If a customer prefers to pay by wire transfer then send them the bank wire instructions document. Upon the banks receipt of the wire transfer the bank may create a wire transfer notification. Normally these are mailed but many banks may also provide notification via e-mail, phone, fax, or via an on-line banking interface.
The Controller must approve all wire transfers and should sign the wire transfer form. The CFO and Controller must both approve all wire transfers over $10,000, and should both sign the wire transfer form. Wire transfers should originate from a checking account. There are limits on transfers from savings or money market accounts but there are no limits on transfers from checking accounts.
Wire Transfer Responsibilities:
The Controller is responsible for approving and initiating all outgoing wire transfer requests.
The CFO (Chief Financial Officer) should approve all wire transfers over $10,000.
Accounts Receivable is responsible for processing all incoming wire transfers.
Wire Transfer Procedure Activities
Wire Transfer Procedure References
FBR REG D: Reserve Requirements of Depository Institutions
A strict Cash Drawers Credit Cards Procedure is essential to your business if it relies on a high volume of cash transactions.
The Cash Drawers Credit Cards Procedure provides proper methods for internal control of funds received. It identifies practices for controlling the cash drawer and describes responsibilities of cash controllers and sales managers. (8 pages, 2191 words)
At the beginning of the shift, each cashier should count the beginning balance of their cash drawer. The cashier should then prepare a cash change fund sufficient for operations during their shift. All change requests or questions regarding the balance of the drawer should be directed to the sales manager. Cashiers should avoid obtaining change from any other cashiers.
Proper cash register practices should be used for all transactions. Cash drawers should only be opened when a tendered amount is entered, whether cash, check, credit card or cash is paid out. You should verify checks with two forms of ID (one with picture) and write driver’s license number on the check. Checks for more than the amount of purchase should require specific approval from the sales manager. Checks should be immediately restrictively endorsed (by stamp: “for deposit only – store name”).
Cash Drawers Credit Cards Responsibilities:
The Cash Manager is responsible for safeguarding/verifying and controlling all cash assets.
Cashiers are responsible for ensuring the completeness and accuracy of all opening, closing and intermediate transactions.
The Sales Manager is responsible for overseeing all sales transactions.
Timely and accurate accounting and depositing of receipts is crucial to positive cash flows for all businesses. To ensure success, your company needs an efficient receipt policy and deposit policy.
The Cash Receipts Deposits Procedure provides proper methods for receiving, applying and depositing cash receipts, and it applies to accounts receivable personnel, the cash controller and the cashier. (6 pages, 653 words)
Cash Receipts Deposits Responsibilities:
Accounts Receivable is responsible for processing all cash and check transactions and depositing the results in the bank.
The Cash Manager is responsible for inspecting and verifying proper signatures or endorsements on checks.
Cashiers are responsible for all cash drawer transactions.
Cash Receipts Deposits Definition:
Tender Item – any item used to tender or pay for a transaction is considered a tender item. Tender items can include coupons, gift certificates, credits, rebates, cash, checks, barter credits, etc.