As a CFO or COO, your company’s bottom line is of the highest priority to you. You’re probably always on the lookout for ways to build ROIs, save on costs, and increase your cash flow in order to be more financially stable in this increasingly competitive business environment. Every little bit helps.
You’ve likely looked at your cost of goods sold, your inventory, your labour, and your operational expenses for ways to save money. But one area of business that you might not have considered when trying to increase your bottom line is cash management. You might be surprised to hear that effective cash management can not only provide you with a great return on your investment, but it can also help you save on labour costs, administration costs, and operations costs. Plus, it can increase your cash flow. The way you manage your cash can have a significant effect on your bottom line, considering the true cost of handling cash.
In effect, properly handling and managing your cash can change your business for the better. But you’re going to have to make some changes and integrate technology for true effectiveness.
Let’s go into more detail.
How Cash Management Solutions Can Save You Money
Cash management solutions can save you money in a few ways.
Firstly, they can reduce your labour costs. When the machines—the cash counters, sorters, and recyclers—take over much of your cash handling functions and at a fraction of the time that it would take your employees, you will be able to reduce your staff in the cash room and have your front-end staff shifts start later and end earlier. This will be the largest portion of your ROI.
Secondly, these solutions keep your money safer. Since your employees won’t be handling your cash as much, they’ll have fewer opportunities for internal theft. Additionally, counterfeit detectors and cash recyclers will be able to verify authentic bills so you don’t take on losses due to fraud. And cash recyclers can also double as vaults, keeping your money safer from robbery.
Third, because these solutions are all automated, they’re 99.9% accurate. This means you’ll be able to reduce your losses caused by human error, like miscalculations and reporting mistakes.
How Cash Management Solutions Can Help with Cash Flow
Cash flow is critical to the success of a business. The more cash you have on hand, the more you can do with it. You know the worst thing a company can face is poor cash flow. It is the most common reason for bankruptcy, especially for small businesses and start-ups.
The implementation of cash management solutions can reduce your vault holdings by 10% or more, leaving you with more money to spend elsewhere, like inventory, marketing, or expansion. For example, if you invest in a cash recycler, all of the money coming in will be recycled out for transactions, so you won’t have to worry about having as much money in your vault at all times.
Embrace Technology for a High ROI
Cash management solutions can create great cost savings for your business and have a significantly positive impact on your bottom line, but only if you embrace technology. Many CFOs and COOs fear the integration of technology, mostly due to unfamiliarity. But there’s no reason to be afraid. If you integrate technology and fully automate your cash handling and management, you will be able to reap the many benefits, such as reduced labour costs, reduced losses, and increased cash flow. It will require drastic changes in the front and back end, but these changes are required in the twenty-first century. It’s time to take the leap and let technology work its magic on your bottom line.