When they hear the term “treasury management,” many owners of small and mid-sized companies tune out, thinking that their companies are too small to benefit. Or, they often think that treasury management tools offered by their bank are too complicated and expensive for them to ever consider using.

In reality, these tools can actually help you improve efficiencies and reduce operating costs. There is a wide range of bank treasury management tools that can help boost cash flow and improve cash management for practically any size company. Following is an overview of some of the common treasury management tools and how they can help you improve your company’s overall financial and cash management.

  • Remote Deposit Capture (RDC) - Better cash management usually starts with improved receivables collections. RDC enables you to deposit checks remotely from wherever you are — whether you’re in your office or out in the field — using a special scanner provided by your bank.

    Better cash management usually starts with improved receivables collections. RDC enables you to deposit checks remotely from wherever you are — whether you’re in your office or out in the field — using a special scanner provided by your bank.

  • Merchant processing services - If your business accepts credit and debit cards for payment, you need to work with a bank that provides efficient and cost-effective merchant processing services. Many offer next-day funds availability, improving your cash flow. These services can simplify payment acceptance, offer mobile payment processing and speed up transactions at the point of sale whether in person or online. Accepting credit and debit cards have also shown that it can increase your revenue by boosting your average ticket size and end-of-day reconciliation is simplified with detailed reporting tools.

  • Information reporting services - Access to timely and accurate information about your bank accounts is critical to making smart decisions about how you manage your company’s cash. Your bank’s information reporting services provide you with instant transaction originations, automatic balance alerts and customized reports across all of your accounts, including accounts at different banks.

  • Account reconciliation tools - These tools help simplify the process of reconciling your bank accounts at the end of the month. Your bank will provide you with check-paid information electronically, which will streamline the reconciliation process while also helping reduce check fraudexposure. Choose from partial or full account reconciliation, depending on the complexity of your needs.

  • Payables management tools - Managing disbursements is just as important as improving collections when it comes to boosting cash flow. Your bank offers a wide range of different payables management tools to help you accomplish this, including business online bill pay coordinated with your accounting software program (like QuickBooks®, for example); wire transfers; payroll processing services; and federal, state and local tax payments.

Also, with a Zero Balance Account (ZBA), you can arrange for automatic internal funds transfers from a master bank account to operating accounts to fund checks presented for payment against these accounts. This will give you greater control over funds disbursements while eliminating excess account balances.

  • Electronic Funds Transfers (EFT) via the Automated Clearing House (ACH) - Making payments electronically using the nationwide ACH network offers a host of benefits when compared to making paper payments via checks. These include lower payment processing costs, more control over the timing of payments, improved payment reliability, and better cash flow forecasting.

    A wide range of different types of payments can be made using the ACH, including payroll, taxes and vendor payments. As an added benefit, generally ACH payments require a security token, which ensures a greater level of payment security.

  • Fraud prevention tools - More businesses today across all types of industries are increasingly susceptible to check fraud. One good tool for preventing check fraud is Positive Pay, a bank service that compares checks presented for payment to a list of checks your company has issued. Only checks that match the check-issued file exactly are paid — the rest are reported to you for a pay or no-pay decision. And by adding the payee verify feature you get even greater protection.

  • Wholesale lockbox - and a wholesale lockbox is one of the best ways to streamline collection of your accounts receivable. Instead of mailing checks to your business address, your clients will remit payment directly to a special post office box monitored throughout the day by your bank.

    The bank will then process your receivables as soon as it picks them up. This reduces mail and check processing float and accelerates the availability of your cash to your business, as well as eliminates the need for an employee to have to drive to the bank to make deposits.

To learn more about these and other treasury management tools offered by City National Bank, give us a call at (800) 773-7100 or Contact Us and request that a Relationship Manager contact you.