What does a controlled disbursement allow a company to do?

A controlled disbursement is a cash management tool that enables a company to know the exact amount needed to clear debits each day. This practice typically involves a financial institution providing the company with information about pending transactions, such as checks that will be presented for payment. By having this information, the company can manage its cash flow more effectively, ensuring that sufficient funds are available to cover outgoing payments without leaving excess cash idle in their accounts.

This level of financial insight facilitates better planning and decision-making about cash reserves, helping the company optimize its working capital. The other options, while relevant to different aspects of financial management or payment processing, do not accurately describe what a controlled disbursement specifically allows a company to do. Understanding controlled disbursement is crucial for managing cash flow efficiently and improving overall financial operations.