Even if your business has mastered cash management basics, there’s always room to optimize and improve your systems. One way to do this is by adopting a cash management platform.
In addition to enhancing your productivity and profitability, a cash management platform can put you on track to reach your long-term financial goals. If you’re on the fence about adopting such a platform, here are four reasons it’s a great idea for your business’s bottom line.
Why use a cash management platform?
1. Fast access to cash
The more access to cash your business has, the more options you have. By having cash on hand your business can meet its everyday operational needs without taking on debt. Your business can also use cash to continue its growth by buying raw materials, paying its employees, and making investments.
If your company has access to idle cash, you can use it to deliver value to your company. A cash management platform can streamline and automate cash flow solutions. By entrusting the platform with these responsibilities, your business can have faster access to its cash.
These providers also offer real-time access to information about the status of your cash. Having information about your cash flow easily visible allows leadership to make informed decisions.
2. Reduced risk
Managing your company’s cash flow without a management platform comes with huge risks to the financial viability of your business. Loss and theft are two of the biggest risks any company faces. Profit loss can devastate a company’s finances and, if not properly managed, wipe out a company entirely. Theft, from either employees or external parties, can also deplete a company’s cash on hand.
Using a cash management platform mitigates those risks by automating tasks and reviewing finances. An effective platform implements touch points during a business’s cash-handling process. Should a loss happen, you can go back and see exactly when and how it occurred. In addition to tracking features, cash management platforms can automate the pickup and delivery of cash, eliminating liability and the risk of internal or external theft.
3. Improved efficiency
Implementing a cash management system streamlines your operational processes and gives your team more time to focus on other priorities. With these new processes in place, your employees will no longer be required to spend time manually reviewing and handling cash, nor will they have to spend hours training and learning outdated cash-handling techniques.
Many platforms also offer free tutorials on cash management basics and in-system diagnostics, cutting down the amount of time needed for internal training and maintenance.
4. Revenue Generation
The most compelling feature of a cash management platform is its ability to generate revenue on idle cash. Having access to different allocations tailored to your needs (liquidity, risk, etc.) enables your business to increase revenue. A strong cash management platform gives you access to an optimized blended yield at all times - selecting allocations, owning the required trading, and moving money for your business.
Looking for a cash management solution or guidance in your treasury management? Contact us for a demo to see how we can help your business earn more money on your idle cash, or open an account with Treasure to get started.