Strategic Business Unit Holds Training for Senior Accounting Personnel
In a bid to enhance the accounting skills of its workers for effective performance, the Strategic Business Unit of Covenant University has organized a three-day training programme for Auditors and Accounts Personnel.
The training programme, which kicked off on June 30, 2015, was facilitated by the Deputy Dean, School of Business, Dr Francis Iyoha, who spoke on the topic “Cash Management”. Dr Iyoha explained that Cash Management is the scheduled gathering of information about a company’s cash flow, receipts, disbursements and balances.
According to him, Cash Management is necessary because there are mis-matches between the timing of payments and the availability of cash. He added that Cash Management is very important and self discipline is one way to achieve it. “It is imperative that you know how your cash is flowing in and where it is going to”, he advised.
Dr Iyoha stated further that, the goal of modern Cash Management is to ensure that adequate cash is available to minimize borrowing costs, maximize returns on idle cash as well as manage risks, by investing temporary surpluses productively. “This,” he said, “will help to meet relevant commitments”.
He, however, added that for effective Cash Management, there is the need to develop accurate and timely short term estimates of cash inflows and outflows.
In his presentation, Dr Iyoha disclosed that effective Cash Management ensures the timely provision of necessary cash resources that will contribute to the success of any company but this can only take place if there are skills and capacity to record, monitor and project short term inflows and outflows.
Dr Iyoha took time to highlight the duties of a Cash Manager/Treasure, which include: being responsible for monitoring the daily cash positions; identifying shortages and surpluses; controlling balances on deposit; moving funds as necessary between several bank accounts; managing short term working capital; forecasting future shortages and surpluses; managing banking relations; reforming analytic reviews and feasibility studies of banking services as well as analyzing, designing and implementing Cash Management systems and procedures.
“Stealing of cash by employees; taking bribes from suppliers before clearing their cheques; tampering with cheque; accepting cash from customers for a purchase and not recording the transaction thereby keeping it for personal use; irregular bank reconciliation and employees overbilling the company for travel and other business related expenses such as lunches, hotels, air travel, taxi fare among others, are some of the challenges facing Cash Management in an organization”, he noted.
He, therefore, advised that to maintain Cash Security, accessibility to the areas where safes are kept should be restricted and remain secured at all times. All cash should be deposited to the bank daily except for a reasonable amount needed for current operations. All cheques should be carefully handled while all unused receipt booklets should be under lock and key. Most importantly, every person who handles cash should be educated about counterfeit banknote.
Present at the session were Director, Strategic Business Unit, Dr. Abiola Babajide, Unit Financial Controller, Pastor Bolujoko Oluwole, another Facilitator, Prince Ify Mba, as well as other concerned SBU accounting personnel.