# Electronic Cash Management System
Speed is the essence of any modern cash management system, so most systems today are electronic. Data and funds are transferred electronically, and the various locations involved — collection point, company account, payment destination — are linked through a satellite/network.
## Key Advantages
1. Significant saving in time.
2. Decrease in interest costs.
3. Less paper work.
4. Greater accounting accuracy.
5. More control over time and funds.
6. Supports electronic payments.
7. Faster transfer of funds from one location to another, where required.
8. Speedy conversion of various instruments into cash.
9. Funds made available wherever and whenever required.
10. Reduction in 'idle float' to the maximum possible extent.
11. Ensures no idle funds are placed anywhere in the organization.
12. Makes inter-bank balancing of funds much easier.
13. A true form of centralised cash management.
14. Faster electronic reconciliation.
15. Allows detection of book-keeping errors.
16. Reduces the number of cheques issued.
17. Earns interest income / reduces interest expense.
> Exam tip: A 4-mark question typically asks for any four of these advantages.