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Cash disbursement is the outflow of cash from a business for expenses, investments, or any other operational or financial costs. It's an important part of managing a company's cash flow and maintaining accurate financial records.
The cash disbursement process often involves various checks and balances, like approvals and reviews, to prevent fraud and ensure accurate financial management. Examples of cash disbursements include payment for employee salaries, vendor invoices, taxes, and more. Effective cash disbursement management can help a company optimize its cash flow and maintain strong financial health.
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