We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Cash Disbursement?

By G. Wiesen
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Cash disbursement is a process by which a business pays out money to a person or organization, typically related to operating expenses for that business. While the name implies this type of payment is made out in cash, which is possible, it is common for payments to be made as checks or credit transactions, too. There are a number of reasons for a business to make such a disbursement, including employee salaries, rent on physical locations, and equipment. Cash disbursement can be subtracted from cash receipts to determine revenue for a business.

There are a number of ways a business can make a cash disbursement, including the use of cash to make payments. Checks are often used to allow such disbursements to be more easily tracked and recorded by a business. The use of credit cards and similar methods has become increasingly popular, as credit cards have become more commonly accepted and allow a business to track disbursements and expenses more easily. A company can also use direct money transfers for cash disbursement purposes, usually through the transfer of funds directly from the account of the business into the account of a person or organization.

One of the most common purposes of a cash disbursement is for payment to employees for salary. Many businesses with physical locations also incur debts regarding rent or other fees for that location, and payment of this debt is typically handled as a disbursement. The purchase of new equipment and upkeep can be an important expense handled through cash disbursement. Many companies also have a number of other operating expenses, such as website hosting and marketing or advertising campaigns and materials.

A cash disbursement is typically tracked in a ledger or journal, which is used by the company for accounting purposes. This journal usually tracks disbursements by date and can include information about each disbursement made. Such information often includes the name of the person or business the payment was made to, the form of the payment made such as cash or check, a tracking number, and the general reason for the disbursement. These payments are subtracted from the total income from cash receipts to determine the revenue for a company over a certain period.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.