IMPORTANCE OF CASH CONTROL

Cash is a vital component of any profit-generating organization. An organization's assets generate revenue, which in turn generates cash inflows. These cash inflows are used for several purposes: to pay creditors, compensate employees, reward shareholders, provide asset replacement, and provide for growth.Fortunately, there are ways management can safeguard the cash generated by its organization. Each of the following methods will help an organization prevent losses due to human error or theft:Fortunately, there are ways management can safeguard the cash generated by its organization. Each of the following methods will help an organization prevent losses due to human error or theft:QuickBooks Administrator should set up and use a password since anyone logging in to the company's QuickBooks files as the and assigns access to all other users, the company should carefully consider whom to select as administrator. The person selected should have an understanding of the importance of this position on the internal control of the company. Some companies designate the controller or Chief Financial Officer as the QuickBooks Administrator because those individuals normally do not have direct interaction with the software.administrator has full access to all areas in QuickBooks. After setting up a name and password, the QuickBooks Administrator should click the "Closing Date" button in the "
The name and password for the QuickBooks Administrator can be set up by selecting "Set Up Users" from the "Company" menu. The QuickBooks Administrator must be set up before any other users can be set up. Although QuickBooks does not require the use of passwords, the User List" window and enter the date through which books are closed in the "Accounting" preferences dialog box.