What Is Cash Recycling?
Cash recycling simply means you use the cash received during your normal course of business, while accounting for all receipts and maintaining the integrity of each deposit. Cash is received in the form of donations or sometimes as payment for goods or services sold. Once the cash has been properly counted and accounted for, instead of being deposited, it is either replaced with a check (issued by your ministry and made payable to your ministry) and then deposited into your bank account; or a journal entry is completed to account for the recycled cash. Either process enables you to have cash available for your ministry’s ongoing operational needs. Policies and Procedures To ensure that ministry financial priorities are upheld, it is important to develop cash recycling policies and procedures. Keep in mind that the process should be simple, easy to follow, and transparent. It should also include a system of internal controls for safe handling of “recycled” cash—from providing a securely
