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Why must cash receipts be banked promptly?

Beginner

Answer

Prompt banking reduces the risk of theft or loss of physical cash, improves the accuracy of bank records, keeps the business's funds secure and available, and supports timely bank reconciliation. Holding large amounts of cash on the premises is a control weakness.
Real-world example The shop banks each day's takings the next morning to minimize cash held overnight.

Common follow-ups: What risk does prompt banking reduce? | How does it aid reconciliation?