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Unit 10: Cash Management




          performed separately from the financial plan and projected balance sheet), changes in one area  Notes
          are not automatically reflected in the other. The result is a lack of visibility and collaboration
          that jeopardizes the integrity of the plans and introduces unwelcome delays into the planning
          process.
          Similarly, the lack of process support that characterizes spreadsheet-bound processes makes it
          difficult to monitor changes and trace them back to individuals.

          Self Assessment

          Fill in the blanks:
          1.   Planning long-term projects is .................................
          2.   Public sector organizations are often ................................. by the difficulty of justifying the
               potentially high cost of aborting a project if it doesn’t progress.
          3.   Planning and preparatory work are .................................
          4.   Budgeting for capital expenditures is a complicated process involving .................................
               teams and a high degree of inherent uncertainty.

          10.2 Day to Day Cash Management

          The one item in a retail store a business owner can’t do without is the cash register. Whether it’s
          the traditional, electronic cash management system or an elaborate computerized point of sale
          (POS) system, every store needs a machine to process sales.

          10.2.1 Cash Registers vs. Point of Sale (POS) Systems

          When the doors are open and the lights are on, the cash register becomes more than a safe place
          to store money. It has the ability to save money, quickly process a customer’s transaction and
          accurately keep records.

          One reason for the high initial expense involved with a cash register or point of sale system is
          that a business can expect to get many years of service from the first machine they buy. The life
          expectancy of a cash register is between 10–15 years, with upgrades around 5–7 years.

          Your Needs

          The amount of bells and whistles needed for a cash register will vary by type of business. Some
          questions to ask before choosing a point of sale system or cash register are:

               What tax must your business collect on a sale?
               How many departments are in your store?
               How many products do you carry now?
               How many in the future?
               How busy will your store be?
               Will you need more than one register?
               Will you accept coupons?
               How will your clerks process refunds?
               What types of payment does your business accept?




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