Cash receipts management is the system used in controlling and properly recording receipts from cash transactions and a receipt scanner can become an invaluable part of the process. Because cash and credit payments have different effects on the liquidity position of a business, they are treated differently in the way they are recorded. 

Receipts are usually issued when a cash payment is made and a cash receipts management system defines the policies of a business in handling cash receipts. In standard accounting policies and procedures, the cash receipts management system covers the following areas: a) how cash is received, b) how it is deposited in a bank account, c) how the receipt is recorded and d) how the information in the cash receipts is reconciled in the books of the business.

In the cash receipts management system, how the cash is received becomes the responsibility of the secretary, mail room clerk, store clerk, cashier or any person who receives the cash. A recording sheet is maintained in which all the information about the payment is entered, especially when the payment is made by check. The check or cash are then placed in an envelope together with the recording sheet, sealed and turned over to the cashier who signifies receipt of the payment in a copy of the recording sheet.

The cashier verifies the cash and cheques then makes out a corresponding deposit slip for the amount. A cash receipts management system holds the cashier responsible for remitting the cash and checks with the deposit slip to the bank, in person or by messenger.

It is in the recording of cash receipts that a receipt scanner plays an important role. The cashier updates the cash receipts journal by identifying the outstanding invoices to which the cash receipts apply, printing the journal and forwarding it to Accounts Receivable. With the use of a receipt scanner, the cashier can create digital copies of the cash receipts for filing and storage. The use of a receipt scanner eliminates the need to keep files of the actual receipts. It also does away with the problems encountered with paper receipts which tend to fade over time or get crumpled and damaged.

Using its built-in software, a receipt scanner can create a list of cash receipts. This other feature of the receipt scanner assists in the reconciliation of cash receipts with the books of the business as part of the cash receipts management procedure.

No related posts.