Cash flow poses a nonstop concern when you own a business. It can be challenging to manage cash inflows and outflows, especially when you need to make significant investments in your business just to stay competitive.
Whether you perform the day-to-day recording and reconciling of incoming payments with invoices and billings for new sales, there are a number of online services available to help you with your cash management, also called treasury management. Here are three to keep in mind:
This tool can help you reduce or even eliminate trips to the bank, saving you valuable time and money. Without leaving your office, you can use a specialized scanner that connects to your computer to scan checks and send the images electronically over a secure Internet connection to your bank for deposit.
The scanner captures the front and back of each check, including the dollar amount and MICR data (the processing information at the bottom). If you deposit multiple checks, the amount is totaled and presented for your review. Electronic deposits can be made on your schedule, and many services accept electronic deposits later in the day than regular banking cut-off hours, getting the funds into your account faster.
Automated Clearing House (ACH)
ACH has become a premier tool for both electronic collections and electronic payments. Provided through an Internet platform, ACH offers one of the fastest and most cost-effective ways to transfer funds. Businesses of all sizes now use it to expedite transactions and boost cash flow.
You can make a variety of electronic payments through ACH, including payroll, vendor and tax outlays. The network also provides an easy way to manage electronic collections of customer receivables, including recurring transactions such as rent and loan payments, turning receivables into working capital faster and saving your billing staff valuable time. ACH uses sophisticated encryption and other security features to help keep financial transfers safe during transit, but you must keep your systems safe to avoid unauthorized access.
Commercial credit card
You may not think of commercial credit cards as a treasury management tool, but they offer several features to help boost your cash flow. They are more convenient than writing checks and can speed transactions. They also can be safer than carrying cash.
Commercial credit cards allow you to set credit limits for individual employees and to monitor transactions online. You can also review and approve expense reports online. Look for a commercial credit card program that lets you attach allocation codes to each transaction to facilitate reporting.
City National Bank offers a variety of tools and services to help your company improve its cash flow, including electronic deposits, electronic payments and collections, and the City National Visa® Commercial Credit Card. Call (800) 773-7100 or request that a Relationship Manager contact you.