Float in accounting refers to the time difference between when a payment is initiated and when the funds are actually transferred from the payer’s account to the payee’s account. This period can affect cash flow management and financial reporting. Understanding “what is float in accounting” is crucial for optimizing liquidity and ensuring accurate financial statements. Float is often managed to improve cash efficiency and reduce borrowing costs.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
