You probably have nightmares about cash flow. I think every CFO does. Not having enough cash available to pay your employees, your suppliers, and all of your bills every month can be an incredibly stressful situation to deal with.
The financial success of your business is directly related to your cash flow. And you have to take steps to ensure that you have money available when you need it. In an effort to improve your liquidity, perhaps you’ve tried taking advantage of early payment incentives, renegotiated your supplier policies, tightened your inventory, considered leasing instead of buying, and stretched out your payables. But if you’re still too tight on cash for your liking, you should consider another avenue for optimizing your liquidity that you might not have considered: using cash management technology.
In today’s digital world, investing in technology can allow you to streamline efforts, enhance productivity, and increase efficiencies. And investing in cash management technology can also improve cash flow.
Check out some of the cash management technologies you might want to consider in your quest for better liquidity.
Cheque Scanning Technology
Though paper cheques have been around for generations, the future is becoming increasingly digital, and the future of the cheques is also becoming more digital. Paper cheques are being replaced by electronic cheques, and this is good news for your business.
When you invest in cheque scanning technology, you’ll be able to not only efficiently process, file, and store your cheque payments, but you’ll also be able to deposit them faster online. With a cheque scanner, you can deposit cheques via the internet instead of going to the bank.
But how will this improve cash flow, you might ask? Consider how many cheques you have sitting in your office right now. You probably wait until you have enough of them to warrant a trip to the bank. You might be delaying that trip simply because you don’t have time to make the commute and stand in line. But with cheque scanning technology, you don’t even have to leave your office! That means all of the money that you’ve received as payments but is sitting in your drawer can be deposited much quicker, so you can have access to your funds. And electronic cheques don’t need to be transported to different verification locations, either, so your funds won’t be put on hold—they’ll be available to you almost immediately.
Currency Recycling Technology
If cheque scanning technology has revolutionized the world of cheques, then currency recycling has certainly revolutionized the world of cash management. Processing transactions has never been faster, easier, or more accurate.
The machine/smart safe accepts cash for transactions, counts it, sorts it, verifies it, and reports it, then stores it to be used for future transactions. Not only will a currency recycler cut down your transaction times and make your lines move faster, improving customer service, but it will also allow you to have less cash on hand for day-to-day transactions. You won’t need cash sitting in your vault just in case you need it for your customers, because this machine recycles the same money throughout the day. With less cash needed in your vault, you’ll have better cash flow.
Cash Counting and Sorting Technology
It takes an incredible amount of time to count, double count, sort, and reconcile cash every day. And this results in higher labour costs. In addition, lax cash management processes put you at risk of human error losses, fraud, and internal theft, all of which can also result in more wasted money for your business. But thanks to cash counting sorting technology, you can have machines doing all of the work, thus reducing your labour costs and increasing accuracy and accountability so you can lower your losses. When you save money, you can improve your cash flow.