An organization trying to incorporate better financial information systems into their daily operations, need to understand the importance of Transaction Control and its roots lie in the very basic way of making a business transaction. Much of the failure despite huge investment in a financial information system is due to bad tracking of the cash flow in and out of the company. Sure, prior to online internet based transactions, exchange of cash against resources was the only legitimate way a transaction and was considered complete but with companies scaling their operations to reach across borders (both locally and internationally) and also in size, it is important to understand that tracking of cash flow is anything but easy.
By switching to cashless transactions, the cash flow can be monitored in a structured manner and the workflow can be set to adhere to various compliance requirements and approvals before a transaction can actually be considered complete.
Switching to a cashless environment involves great efforts but is sure to complement the objective of having a Systematic, Secure, Integrated, Digital, Automated and Standardized Financial Information System.
Link – https://jfin-swufe.springeropen.com/articles/10.1186/s40854-016-0023-z