The system holds relevant capacity and it is set to improve cash management. It seeks to streamline cash collection, Administration of records and determination of discount figures that would be sustainable.
It is significant for the financial administrators at Hillside school to establish and understand the processes that the new billing system presents. This is to enable development of accurate decisions on when and at what point they should issue the discount with an aim to eliminate misappropriations or realization of dismal performance in the future. In particular, the new system presents a streamlined structure that defines cash collection effectively. The structure enables individuals to make credible choices from the available options based on set guidelines to boost performance (Barnard, 2008). The administration in a pursuit to improve student enrolment and effective collection of cash seeks to employ a discount strategy for individuals who make fixed payments.
This is to ensure early payment of fees by students that would help in facilitating effective financial planning. In any setting, provision of cash discount influence consumers positively. Indeed, the new billing system presents a credible cash collection department where the discount figure should be developed. That is, the discount provided to fixed payees should be sorted at the accounts department to promote accuracy and accountability. The process would foster efficiency and effectiveness in terms of fee payment and collection. The school plans to give 5% discount to students who make prompt payments basic on fixed terms.
The figure shows the cash transaction system where fee is collected from tuition and after care service centers. The system is to be upgraded with a discount payment program to facilitate the new initiative that is aimed at encouraging prompt payments.