Cash is the lifeblood of your business. You need it to be able to process transactions, pay your suppliers and lenders, market your products or services, pay your workers, and pay other expenses like rent and utilities. If you’re having cash flow issues, you know how tough and stressful it can be to not know how to pay your next set of bills. No one wants to face insolvency, but bad cash flow often causes such a devastating consequence.
It’s critical to the success of your business that you prioritize optimizing your liquidity. Luckily, there are some quick cash handling fixes that can help boost your cash flow. You might be surprised to hear that cash flow can be optimized just by strengthening your cash handling procedures, but it’s true.
Here are five ways you can boost your liquidity by optimizing the way you handle the money at your organization.
Invest in a Cash Scanner
If your customers often pay by cheque for your products or services, investing in a cash scanner can definitely boost your cash flow. With a cheque scanner, you can turn your paper cheques into digital form and safely deposit them right away online, from the comfort of your office.
When you don’t have to find time to commute back and forth to the bank, you can deposit your cheque payments sooner. Plus, as digital cheques don’t have to be transported to different sorting facilities, you’ll also have access to your cash sooner.
You won’t be sitting on your money waiting to get to the bank and you won’t have to wait as many business days to receive your money—it’s a win-win. It’ll optimize your liquidity so you can make outflow payments sooner.
Recycle Your Money
A currency recycler is an easy to use solution that increases your cash flow from the moment of implementation. The same cash that goes in comes out, on a cycle. You keep using the same bills and coins. That means you’ll need less cash on hand to process transactions, so you’ll have more money in your bank account to spend on other expenses when you need it. Cash management solutions also provide cash flow reports which allow you to track your cash and determine where you can reduce your cash on hand.
Let Machines Do the Counting and Sorting
When you eliminate humans from the equation when it comes to counting and sorting your company money, you not only get the work done faster, but you also reduce the risk of errors being made—errors that can cost you money. The less money you lose to human error, the more money you get to keep. Plus having the machines do the work means you can reduce your labour costs, which will also improve your cash flow.
Protect Your Business from Fraud
Some industries, like the retail and restaurant industries, are often targeted by criminals looking to make quick money through fraudulent practices. When you protect your business against fraud by using a cash management solution or a counterfeit detector and cheque imaging solutions, you can prevent significant losses that end up hurting your cash flow.
Train Your Staff
Much of your liquidity issues could be prevented if you effectively train your employees on proper cash handling procedures. Put strict cash handling processes in place and ensure that they are diligently followed by all of your workers, old and new. You’ll reduce your risk of avoidable mistakes that cost you money. And you’ll have greater control over your cash—where it is, who was accountable for it, and how much you have at any given time. This will allow you to better manage it and reduce the risk of internal theft.
Cash Management Solutions Make a Significant Difference
When you invest in cash management solutions, like cheque scanners, cash recyclers, currency counters and sorters, and counterfeit detectors as well as optimize your cash handling procedures, you can boost your cash flow. These quick fixes can make a significant difference to your cash situation, so you can improve your overall business.