Timing of Disbursements
The finance official must work with other departments to determine the timing
and amount of payments that need to be made. The finance official makes
decisions such as whether to take advantage of vendor discounts when offered.
Effective cash management practices involve setting up a disbursement schedule
that allows a government to pay bills timely but eliminates frequent check
runs. Many governments issue checks once a week or even twice a month. By
issuing checks in batches, governments can manage their cash flows more
effectively and save on banking transaction costs, check supplies, and postage