according to the "provisional regulations on cash management", in addition to paying wages and bonuses, purchasing agricultural and sideline products from individuals by purchasing units, paying personal labor remuneration and various kinds of labor insurance and welfare, the economic exchanges between account opening units must be settled by bank transfer.

The excessive cash on hand of private enterprises first violates the Provisional Regulations on Cash Management. Once it is discovered by the tax authorities, it is suspected of tax evasion and even being audited. Once the accounts are audited by the tax authorities, those inflated expenses will reduce profits, and the situation of underpaying income tax will be exposed, so they will be fined and cause losses to private enterprises.

In addition, there is too much cash on hand, which is very unsafe, and cases of theft and robbery often occur. This will also cause greater losses for private enterprises.