CFOs must keep their companies financially stable and work towards growth. With so much on their plates, you might be wondering why some of the best leaders in finance and treasury are prioritizing and pursuing cash management improvements. After all, they should be focused on optimizing liquidity and increasing cash flow, on lowering costs for a better bottom line, and on risk management to reduce losses—not on the way cashiers handle cash, right?
You might think that the way your company handles cash should be very low at the bottom of your priority list, but improving speed and accuracy in cash handling can help address many financial issues, like cash flow, losses, and high costs. Improving your cash management can contribute to better business and a healthier bottom line.
Here are some of the reasons why the brightest CFOs are prioritizing cash management, and why you should, too.
Optimized Cash Flow
Cash flow is a top priority for virtually every CFO. Without effective liquidity, businesses can go under. In fact, it happens all the time. You may have already taken on some quick fixes to address cash flow problems, like renegotiating payment terms with vendors and clients, adopting just-in-time inventory, and avoiding bad debts by credit checking. But if you’re still having issues with cash flow after trying out various other solutions, you should invest in cash management solutions as your next step—it can really help.
Cheque scanners, for example, can allow you to deposit digital cheques remotely, so you can have access to your cash sooner. You won’t have cheques piling up until you find time to go to the bank. A currency recycler, too, can help by reducing your vault holdings by more than 10%. Because the machine recycles cash that comes in for future transactions, you won’t need so much cash in your vault just in case you need it—you can use it elsewhere.
The lower your costs, the better your bottom line. Every CFO prioritizes cost reductions where possible. They try to negotiate the best deals for products and services. They might be forced to let go of employees to reduce labour costs. They might switch vendors for better prices.
But there’s one more thing you can do to significantly reduce your costs: invest in cash management solutions.
Specifically, automating your cash handling processes can help you to dramatically reduce your labour costs. Investing in solutions requires a one-time payment that will result in a great ROI and save you money day after day, year after year. Automating your systems means that machines will do the work instead of your employees. You won’t have to pay anyone to create floats, count and reconcile the day’s profits, or verify vault transactions. You could save more than 15 hours a day in labour costs, which will make a big difference to your bottom line.
When you lower your risk of losing out on cash, you can increase your profits. Of course, you don’t want to lose out due to counterfeit fraud, to internal theft, and to human error. You want to keep every dollar that you’ve earned. But when you handle cash manually, you increase your risks considerably. You become vulnerable to counterfeit if your employees don’t catch the fraudulent bills. You give employees opportunities to steal from you every time they handle your money without accountability and tracking. And you inevitably lose out due to human error during the cash handling process.
Investing in cash management solutions can significantly reduce these risks. Counterfeit detectors can detect fraudulent bills and cash counters and sorters as well as currency recyclers can increase accountability, keep your employees’ hands off your money, and drastically increase accuracy to reduce human error.
When you integrate cash management solutions into your business, you can reap the rewards—optimal cash flow, reduced costs, and better cash management.