Cash plays a major role in the economy of any country. All economic and business entities regularly conduct operations and complete transactions using non-cash and cash. That is, it is a tool that allows the development of economic relations and the expansion of enterprises.
If we talk about this concept on the scale of a separate business unit, then the enterprise’s cash includes cash on hand, resources on various accounts of the company in the bank, and money related to decentralized reserves, which help to improve the company’s work and prevent losses in unforeseen situations.
In addition, monetary assets are the most important indicator characterizing the effectiveness of all types of activities of the enterprise. After all, they allow you to calculate indicators of profitability, liquidity and solvency. A large amount of cash resources in the organization indicates a high degree of liquidity, which means the ability to timely settle with counterparties to obligations.
Thus, we can say that the money should be carefully planned. Their rational distribution of funds and their competent use in financial, industrial and investment activities provides any enterprise with a stable income. The main task of a specialist is the organization of activities in which the timely payment of debt of debtors will ensure repayment of the debt of an economic entity to creditors.
Cash funds throughout the state are also an essential characteristic of the country's economic situation in the international arena. The government, together with the national bank, regulates the amount of money in the hands of the population and in the calculations of economic entities. The amount of cash depends on the supply and demand in the market. If a situation arises of a significant increase in supply over demand, the inflation rate will automatically increase. The lack of control on the part of the regulatory authorities can lead to the destruction of the banking system and a severe crisis in the economy.
Most modern money is a sign of value, which, in turn, is divided into credit money and paper. Signs of value means a currency whose nominal value is much lower than the funds spent on its production. That is, such money does not have real security, and its circulation is based on public confidence in the state.
Before, only coins made of gold and silver could be called money, but they are inconvenient to use, so banknotes were introduced. Indeed, paper money is much more convenient. They are easier, even a large amount can be transferred without much difficulty and discomfort. Since the onset of credit relations, credit money has been developed. Currently, they are the main means of payment in settlements between various counterparties. The most common are bills and checks, as they have been successfully operating for many years. This means of payment is a security, the possession of which allows you to receive the specified amount after a specified period of time.
Recently, settlements using bank cards have been actively developing , and their owners can be both individuals and legal entities. Allocate debit, requiring preliminary deposit of funds to the client’s bank account , and credit cards, allowing you to borrow from the bank within the limit of the loan. The usefulness of such cards is beyond doubt, it is a really convenient and easy to use means of payment. The only drawback may be the need for special equipment, which in our country can not be found everywhere.