Not surprisingly, in a time where uncertainty and volatility are rampant in business, CFOs have responded that cash management is one of their top priorities in the year to come.
Looking forward to 2016 and beyond, CFOs are looking to prioritize cash management in order to tackle their biggest challenges. To do right by their companies, CFOs need to consider which solutions will allow them to reduce risk, increase liquidity, reduce costs, and more. Being able to solve all of their cash management problems with one solution would be ideal, but how is it possible? By reaching the best decision around the issues of liquidity, risk, and profitability: by investing in cash management solutions.
As the use of technology becomes the norm in many areas of business, such as sales and marketing, it’s about time that CFOs consider taking advantage of technological advancements to reach their financial goals. Technology has revolutionized the way companies can handle and manage their cash. CFOs who invest in cash-related solutions can solve the financial issues described below.
Poor Cash Flow
Any financial professional knows that poor cash flow is a bad sign in business. If you don’t have enough money flowing into your company in order to pay your expenses, bills, and vendors, you might not stay in business very long. If you’ve already negotiated your credit terms with vendors, sold off excess inventory, and done every quick fix you can think of to increase cash flow but you’re still tight for cash, then using technology to manage your cash should be your next step.
Cash management technology can help increase liquidity. With cheque scanners, for example, you can deposit your cheques quicker without even having to leave your office. This means you won’t have funds sitting in your desk that you don’t have access to until you find time to get to the bank. Plus, digital cheques don’t take as long to process, so your money will be in your account sooner, which means you can spend it sooner.
Cash recyclers, too, can help with cash flow. These machines accept cash for transactions and store them for future use. The same money that comes in then goes out again for future customer transactions. What does this mean for you? You won’t need to have as much money in the vault just in case you run low. You’ll be able to reduce your vault holdings, so you can have more money to spend elsewhere.
High Labour Costs
Labour is likely your biggest company expense, but one that isn’t easily controlled. Instead of taking the drastic step of laying off loyal employees to reduce your labour costs you can invest in cash management solutions to solve your problem instead. By automating your cash handling processes, you can have machines doing the work that previously had to be done by employees, so you won’t need as many cashiers on the floor, as many managers supervising, or as many cash room attendants in the back. You’ll also be able to cut shifts across the board when you let the machines do the work.
Too Many Losses
It’s frustrating to know that your company is losing out on money unnecessarily. But that’s what happens due to human error, internal theft, administrative mistakes, counterfeit fraud, and robbery. These losses aren’t an inevitability in business. You can cut your losses considerably thanks to technology. Automating your system can boost accountability so you reduce internal theft, it can guarantee accuracy so you won’t lose out due to human error, and it can keep your business safe from fraud, too.
Cash handling can affect your bottom line, and if you want to reach your financial goals of increasing cash flow, reducing costs, and reducing risks, you would be wise to prioritize cash management in 2016.