How do company manages payments?
I always had this question like how come company manages payment of the vendors, salaries of staff, petty expenses, insurances, electricity bills, rent, etc. Most companies expands at so rapid level and become global at times. So the payment procedure of all of it always intrigued me. If anyone among you know how big corporates / conglomerates functions when it comes to payment/ withdrawals.. all ears to you! I am genuinely curious to know as one single person on whose account the bank account is opened can’t manage all of it.
admiN
Stealth
9 months ago
I don't know about corporates but for the government department, they have an executive officer at every level. The executive officer and the chairman have a joint bank account in the name of the company (office) and they sign the NEFT letter and cheque to release the money. If by any chance the main executive officer is not available, the assistant has the power to sign the document on their behalf. If by any chance the chairman (he is a politician) is not available, the mayor or SDM can also sign the document. It is an hectic process and due to this, many times the employees spend on their end and then later claim the bills. If by any chance they lose or forget the bill, it is their loss. Also, for many purchases they need to submit 3 bills and the government will pay for the cheapest one although they make false bills to get away with this limitation.
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