Cash concentration

Example:

You have 2 bank accounts. For each of these bank accounts, you set a minimum of XXX 10,000. In the actual account, it appears X has XXX 15,000 while Bank Y has XXX 20,000. The difference XXX 5,000 and XXX 10,000 will be transferred for a total of XXX 15.000 to Bank Account Z. This increases the possibility of using the surplus for other uses.

Cash concentration is the transfer of funds from diverse accounts into a central account to improve the efficiency of cash management. The consolidation of cash into a single account allows a company to maintain smaller cash balances overall, and to identify excess cash available for short term investments.
The cash available in different bank accounts are pooled into a master account. The advantages of cash concentration are