Rose Report: Issue 25

RFSCashreceipts — Managing a Company’s Most Important Asset

issue-25-pic-story3One critical aspect that Rose Financial Services strives to improve for its clients is any area of weakness in internal controls. Internal controls are especially important when it comes to managing cash. Any unreliable spots in the system could call into question—and even jeopardize—the record-keeping and security of a company’s most precious asset: cash.

An important internal control for managing cash receipts is the segregation of duties from the individual who is recording payments and maintaining the records balances. For many organizations, there is not a proper segregation of duties and cash receipt documents are manually passed from one collector to record keeper. There is also often a lag in the reporting of cash receipts to management for cash management purposes. To resolve these issues and ensure such accuracy, RFS rolled out RFSCashreceipts.

As part of RFS’ suite of cloud-based services, RFSCashreceipts is a module that provides a streamlined approach to handling cash receipts and designed to separate the cash custody function from the record keeping. When a check or electronic payment is received, the receipt is logged into the system and includes all supporting documentation that comes with the remittance. The information is submitted electronically to the accounting department, who reviews it and updates client records in the accounting system. At the same time, an e-mail is automatically generated and sent to management and the individuals handling cash management, allowing project managers to have real-time cash updates and disseminate information from a corporate cash management perspective.

Once the bank clears the payment, the system compares the bank amount to that expected and sends any discrepancy back for review. Issues are identified immediately rather than at the end of the month, when reconciliations are handled traditionally. The receipts are also stored in an easy-to-retrieve electronic file for auditing purposes, and can be sorted and searched by customer. This eliminates any need to store paper receipts, manage Excel-based files or manual tracking of discrepancies from the bank.

RFSCashReceipts accompanies other modules in the RFSWorkflow, including RFSP2P (Procure-to-Pay, consisting of RFSPurchasing, RFSPayables and RFSPayment), RFSPayroll, and RFSClosing, all of which streamline internal process to be more accurate and efficient while keeping your organization Audit-Ready-All-Year.