Cash concentration

Cash concentration is the transfer of funds from diverse accounts into a central account to improve the efficiency of cash management. The consolidation of cash into a single account allows a company to maintain smaller cash balances overall, and to identify excess cash available for short term investments.The cash available in different bank accounts are pooled into a master account. The advantages of cash concentration are 1) Cash control2) Cash visibility * v * t * e

Cash concentration

Cash concentration is the transfer of funds from diverse accounts into a central account to improve the efficiency of cash management. The consolidation of cash into a single account allows a company to maintain smaller cash balances overall, and to identify excess cash available for short term investments.The cash available in different bank accounts are pooled into a master account. The advantages of cash concentration are 1) Cash control2) Cash visibility * v * t * e