Virtually every aspect of your business is affected by cash flow. In order to be able to pay your vendors, bills, employees, and other expenses, you need to have enough money available when you need it. When cash isn’t flowing through your business optimally, you risk going bankrupt. Naturally, you need to prioritize improving your cash flow in order to be able to pay your expenses, stay afloat, and stay in business. It’s a necessity.
To ensure that your cash flow doesn’t become your downfall, you’ve probably taken some important steps as the CFO. You may have optimized your terms with your customers and vendors, negotiated billing dates, enforced payment discipline, adopted a just-in-time inventory system, deferred fixed asset additions, and more. But one thing you might not have done—that many CFOs don’t consider doing—is investing in cash management.
Proper cash management can help you to optimize your liquidity, so you can keep operating your company as smoothly as possible, without financial crises.
Partner with a Cash Management Solutions Provider
To get better access to your money when you need it through cash management solutions, the first step is to perform a full assessment of your current cash handling and management processes. This will help you figure out where your weaknesses lie, which risks you need to reduce, and which challenges you need to tackle first.
A cash management solutions provider can help you analyze your current cash strategies and discover new ways to maximize liquidity while also allowing you to better manage your expenses and costs. Partnering with a solutions provider that offers consultation services, provides recommendations and customized solutions packages as well as ongoing support can help you get your cash flow back on track.
Invest in Currency Recycling
If you process a lot of transactions and have to keep a lot of money in the vault to ensure that you have enough cash for customers, then you will definitely benefit from the use of currency recyclers. These machines will accept, verify, and securely store the money you’ve received from customers for transactions and then use this same money for future transactions, floats, and payours. Coin and note recyclers that sit at the counter increase security, accuracy, and enhance customer-employee interaction.
With currency recyclers, you can cut your vault holdings significantly. You won’t need to have so much money just sitting your cash room, left unused. When you require less money for your registers, you can optimize your cash flow.
Use Counters and Sorters
Counters and sorters work at lightning speed, so they can save you a lot of money on your labour costs—your biggest spend category. The less money you have to spend on salaries, the more money you’ll have flowing through the rest of your business. Plus, these machines guarantee accuracy, so you’ll also save on the cost of human error, meaning you’ll have more money in your bank account.
Consider Cheque Scanning
Cheque scanning technology has revolutionized the way businesses can deposit and file their cheque payments, making the process easier and faster than ever before. Instead of letting a few cheques sit around your office for a while until you have a chance to get to the bank, you can deposit them instantly via the web. With a cheque scanner, all you have to do is take photos of both sides of a cheque and send the uploaded images to your financial institution through your internet connection. You can do it directly from your office, at any time. No more worrying about bank hours or long lines.
With cheque scanning, you won’t just let money sit around un-deposited. You’ll deposit your cheques right away so you’ll have access to your money sooner. And since electronic cheques do not need to be shipped to different verification locations, your money won’t be on hold for as long, so you’ll be able to optimize your liquidity and make outflow payments when you need to.