Cash receipt is a money loan given to employees by companies. What’s more, almost every company will then provide cash receipt facilities for employees, the way to do this is by borrowing their salary first before payday is due.
So, what is actually meant by Cash receipt? Is there any benefit to cash receipt? So, to find out more about Cash receipt, you can see the complete review below. So, read this article to the end, Mudalovers.
Understanding Cash Receipt
In a broad sense, Cash receipt is a type of loan fund which is then issued by the company with a nominal amount that is not previously known. However, now, the meaning of Cash receipt itself has narrowed. A more specific meaning of Cash receipt is loan funds provided by a company or agency as a facility specifically intended for employees. In practice, companies generally will also take cash from employee salary allocations.
So, every month, the company will deduct the employee’s salary according to the amount of the loan deduction that was agreed at the beginning. Basically, Cash receipt is a facility provided by the company for the welfare of the company or as a form of company concern for its employees.
Therefore, cash bonds are also different from loan funds from banks. If you borrow from a bank, there is interest attached to the loan. Meanwhile, cash receipt from companies generally do not bear interest and if there are, the figures are very small and will usually be returned to employees in the form of Remaining Business Proceeds (RBU).
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Cash Receipt Benefits
Loans from this company also provide benefits to employees as emergency financial assistance. Below is a complete explanation of the benefits of Cash receipt for employees and companies:
1. Employees
Employees also get emergency funds quickly and without complicated requirements. The advantages of this loan include no interest because the company does not make a profit. Apart from that, cash loans are also usually deducted from employees’ salaries. What’s more important is that employees then get loans from trusted places and don’t cheat.
2. Company
Companies can also show good quality not only to consumers, but also to their employees. Cash receipt can also improve employee performance and productivity for the company. In fact, the company will also gain loyalty and trust from employees who have been assisted by cash loans.
Steps to Get Cash Receipt
To obtain cash receipt, of course there are procedures or SOPs implemented by a company, the implementation of which can then be different in each workplace. However, basically, companies generally also use several procedures in issuing cash receipt, including:
1. Fill out the Cash Receipt Form
Companies usually provide a cash receipt form that employees can fill out directly when applying for loan funds. The general format of this form itself usually puts the company name in the header, document number, applicant’s name, and the amount to be submitted. Finally, at the bottom, there is a column for the signature of the applicant, cashier and HRD.
2. Seek Approval
After filling in the cash receipt form, the next step is to submit the sheet to the finance department which then handles loan funds. Each company certainly has different policies in granting cash receipt approval.
Apart from that, some companies also have to go through financial manager approval. There are even those who then have to pass through branch heads or higher positions.
3. Disbursing Loan Funds
If the cash receipt application has been approved, employees can also immediately withdraw the loan funds at the cashier or in the finance department. Some companies generally record the cash receipts in a book or cash disbursement journal. So, employees just need to put their signature and name in the journal as proof of cash disbursement.
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Factors for someone committing Cash Receipt
Cash receipt is an employee’s debt to the company. Each company also provides cash receipt facilities for employees, by borrowing their salary first before payday is due. The company will also provide facilities and assistance for employees who need cash receipt. Employees can also officially apply for cash receipt to the company.
Apart from that, employees who do cash receipt are usually caused by several factors which will then cause employees to need cash receipt or loan funds from the company. So, below are several cash factors that you should know:
1. Education Fees
Currently, we all understand that the costs of children’s education are increasing day by day. Of course, employees have also estimated the education funds that their children will need, but there are several other expenses that cannot be estimated, such as books, uniforms, field trips and their children’s snacks at school.
2. Medical and maternity costs
In this world, no one wants to go to the hospital, especially over a long period of time. Employee productivity can also continue to decline if they are often sick, so that they will no longer be able to carry out their work according to the specified targets. However, companies also cannot deny and predict the costs, especially if it turns out that the employee then suffers from a serious illness and requires long-term treatment.
The same is true for female employees who then require various extra costs for childbirth and cannot be prevented. For this reason, sometimes some employees will make cash payments so that medical costs can be dealt with immediately, so that employees will quickly recover from their illness.
3. Wedding Costs
No matter how good and well thought out the wedding plans are, sometimes there is a condition that makes the prospective bride and groom feel that they are no longer able to control their expenses for various important events, thus requiring them to take out a loan from the company.
In general, they will then hope to be able to pay off this loan because they get envelopes from their guests. For this reason, the company will estimate the capabilities of employees from the number of invitees who attend when they carry out the cash receipt.
4. Home renovation
We all know that not everyone has a house that is strong enough to withstand extreme weather conditions, especially when the rainy season arrives. The flood disaster then had to be faced by employees who had houses in non-strategic locations.
The monthly salary alone may not be enough to renovate their house. In this case, Cash receipt is really needed to be able to improve the condition of their homes so that their performance is not disrupted, so that employees and their families at home can feel calm.
5. Buy or Replace the Vehicle
Vehicles are one of the things that are most needed to carry out various daily activities. Some employees will certainly face various difficult conditions where their vehicles are no longer suitable for use after working for the company for many years. By making various considerations, employees also have the right to borrow a certain amount of funds from the company to be able to replace or repair their vehicles.
6. Worship Funds
In this case, employees can also apply for cash receipt to the company to cover the funds needed to fulfill their religious calling, such as going on the Hajj or carrying out various religious ceremonies.
However, company management must carry out discussions with employees as best as possible, so that debt repayment does not interfere with their intentions and concentration in worship, as well as creating long-term debt that will interfere with their performance.
7. Vacation Costs
Generally, because the bonus or salary has not been disbursed, the employee then decides to take leave so he can travel and apply for cash for various holiday expenses. Reasons like this are still considered reasonable and normal as long as the company management knows exactly how an employee will pay cash or various loans in the future.
8. Debit card swallowed by machine
This condition, which often occurs, then becomes another factor why employees then give cash to the company. Usually, this condition occurs when the date is old and they want to withdraw money from an ATM machine, but their card is then swallowed in the ATM machine.
In this case, employees no longer need to worry, because the cash receipt facilities provided by each company are ready to help employees, so they no longer need to worry, especially in emergency conditions like this. That way, the company’s daily needs will still be met properly and smoothly.
Cash Receipt Function
Cash receipt itself also has several functions. Here are the functions of cash receipt that you need to know.
1. Increase employee productivity
Salaries and benefits are sometimes not able to cover the various needs of employees. The cause could be because the employee suddenly needs urgent funds or there is another unexpected event.
Of course, if at a crucial moment like that, the company can then be present and provide support to employees, this will have a huge impact on the level of employee loyalty. Employees will also feel a debt of gratitude which will actually make them work more productively for the company.
2. Increase employee loyalty
Another function of cash receipt is that it can help companies increase employee loyalty. With cash receipt, the company’s value in the eyes of employees will also increase. Employees will also feel more connected and want to give their best to the place they work.
However, on the other hand, providing loan funds such as cash receipt can also help companies to bind their employees for a certain time period, which is then adjusted to the loan period proposed by the employee.
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Closing
From the discussion above, it can be said that cash receipt is a loan given by the company to employees to fulfill several needs or needs.
Of course, there are many benefits that can be obtained from giving cash receipt, both for employees and for the company. However, companies still need to carry out regular evaluations of the SOPs for cash disbursement that they are implementing. This needs to be done to improve the system and avoid losses that could impact the company’s financial condition.
That’s the discussion about cash receipt, starting from its meaning to its function. Hopefully all the discussion above can broaden your insight. If you want to look for articles about business, finance and accounting, you can get them at mudabicara.com .