Corporate financing, known as Disbursement, is a process that is closely related to the company’s accounting activities. In the world of daily transactions, if you are familiar with the term payment, then disbursement actually has a similar concept, namely payment in a business context.

Maybe you are still confused about these two terms, let’s look at the discussion in more depth here!

Disbursement is?

In the banking context, disbursement refers to the disbursement of funds made by a company from a certain account. This process aims to allocate funds for various purposes such as vendor payments, building rental costs, raw material acquisition, and employee salary payments.

The term disbursement in the business world is divided into 3 concepts, namely:

First, Disbursement plan, which is a term referring to a document that details plans for withdrawing funds from a bank account.

Second, Disbursement float, a term often encountered in the accounting field, indicates a delay in withdrawing funds by the paying party.

Third. There is a Disbursement Fee, which is a fee charged for each package sent from abroad to Indonesia. Examples of this disbursement are often related to shipping companies such as UPS."

There are types of disbursement in business that are important for you to know.

Cash Disbursement Journal
A document designed to record every expense-related activity. Making this journal involves preparing a cash flow report, usually using a spreadsheet or other financial bookkeeping application.

Cash Disbursement
Cash disbursements refer to payments made directly. For example, when the company pays the bills of employees who are on a business trip. In such situations, the accountant will make a cash disbursement. This payment process is usually done quickly and involves a relatively small amount of money.

Cash Receipt Journal
This bookkeeping journal has the opposite function to the cash disbursement journal. Used to record all transactions involving company cash receipts. Transactions recorded in the cash receipts journal are not only limited. For cash payments, you can also use it to record dividend income, interest received, and others.

As a commercial organization, the company has a target to achieve profits. In achieving this goal, there are transaction activities which include the sale and purchase of goods or services. These transactions require fast, easy, safe and transparent money transfers. This can be realized if your company carries out disbursement activities effectively and appropriately.

So what are the benefits you get from this Disbursement System?

1. The transaction is fast and practical Disbursement is a system that provides benefits in terms of fast and efficient payments. You can make payments to various destinations simultaneously, so that financial activities run smoothly. 2. Transaction Security Recording disbursement regularly helps in planning expenditure plans for the next period. You can have thorough financial planning for each use of company funds. 3. The back-up process becomes easier The finance division usually carries out comprehensive financial data recording while compiling the archives. This data backup is part of efforts to maintain transparency in the use of company funds. Also Read: When the holidays arrive, these businesses are flooded with customers! 4. Makes the audit process easier This method allows the company’s financial audit to take place quickly because you can easily see the company’s expenditure data. The financial report audit process plays an important role in monitoring the performance of the entire business process. By carrying out a financial audit, you can ensure that the use of company funds is running effectively, avoiding the risk of corruption, money laundering and other detrimental things. 5. Improve Company Performance Disbursement indirectly plays a role in improving the company’s business performance. For example, regarding employee salary payments. If salary payments are late simply because the disbursement process is less than optimal, employees can feel dissatisfied with management. This dissatisfaction can affect their performance in the company. Another example of disbursement is when a company makes a refund for a product that is out of stock. Thus the discussion regarding the meaning of disbursement, types and benefits for the company. Disbursement is not only limited to payments and disbursement of funds, but is also related to company growth. In this case, disbursement is a bookkeeping system that affects the credibility of a company. Hopefully this information is useful for you. Find other business articles on the Cashlez Blog. Also Read: Planning a Vacation? Here are some choices that are suitable for entrepreneurs!
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