Question

Bring out some important Cash Collections Threats and their controlling techniques

Answer 1

Ans: Cash Collection threats

1. theft of cash: the cash collected may be robbed or stolen in transit and to avoid this more and more transaction are to be collected digitally, so to avoid the theft scenario.

2. wrong collection from customers: sometimes the collection agent may collect wrong amount, and dont deposit the amount so collected. So in order to avoid this scenario the money receipt should be serially numbered and random cross checking should be done with customers about cash collection

3. Customer Credit: Customer mightn't pay the due liability so there is a high chances of bad debts. So in order that cash credit are given credibility of customers should be checked and proper timely process to be followed for cash collections.