Every company, large or small, knows access to cash is crucial in managing a successful business. This needn’t mean you must keep large stores of cash on hand. It does mean your company will be healthier when you maximize cash flow.
When every last ounce of efficiency is wrung from your cash flow, your company hums like a well-oiled machine. It accepts customer payments, purchases needed equipment and supplies, pays employees and makes other disbursements without issue or delay.
Here are some shrewd ways to maximize cash flow efficiency.
- Embrace ACH and Wire Collections. When too much time is spent collecting debts or customer payments, cash flow efficiency is sapped. Use of ACH, wire collection, and custom-branded secure online portals speeds payments and ensures more of your cash is available to be used.
- Leverage Remote Deposit. Transporting corporate checks, cashier’s checks and money orders to the bank for deposit not only wastes time and effort but is a drain on cash flow efficiency. Your company can avoid these trips by using Remote Deposit to scan and deposit checks from your workplace.
- Benefit from a Retail and Wholesale Lockbox. Designate a post office box for collection of customer payments like checks and other remittances. Your bank will collect the payments and deposit them in your account each day.
- Use Smart Safes. Currency in your place of business can be credited to your bank account, using up-to-the minute currency verification and storage technology tools.
Maximizing cash flow efficiency isn’t always easy, especially for newer businesses. The sooner you master this ability, the better for your company -- and its bottom line.
What techniques have proven most beneficial in optimizing your cash flow?