When managing a business, cash flow is king. It’s how you ensure your employees, vendors and bills get paid on time. Cash flow forecasting is a useful tool for helping you keep the lights on and everything running smoothly. The good news is cash flow management can be made more efficient through a variety of strategies, including Automated Clearing House (ACH) payments, remote check deposit , wire transfer services and fraud protection tools.

What cash flow management is and why it’s important

Cash flow management is overseeing the money that flows in and out of your business, so you can predict your cash flow needs. Smart business owners will want to make payments quickly and easily and be able to convert receivables into cash as fast as possible. This may help you reduce your back-end work if you send payments via electronic means or deposit checks remotely.

Cash flow management can be especially beneficial when planning enables you to have cash on hand, and it helps give an accurate picture of the money you have to work with. Having cash on hand is important because it can help you avoid making late payments, pulling from savings or borrowing money to meet business needs. When cash flow is well managed, a business is ready to thrive.

Efficient cash flow can bring operational flexibility to your business

Cash, cash, cash. Managing it effectively can provide greater flexibility when making business decisions. Some vendors offer discounts for cash payments, and businesses that manage their cash well are in a better position to take advantage of those discounts. When cash isn’t tied up, it could also help your business weather economic downturns. Cash flow forecasting helps you meet payroll and keep paying the bills if things slow down for the season or any other reason.

Strong, predictable cash flow can spur on growth and expansion

If part of your game plan is opening new offices or locations, purchasing real estate or putting business money into financial instruments, cash could make it easier to do so. Having cash on hand can put you in the driver’s seat right away, without the red tape and extra approval requirements of credit. Strong cash management not only allows for better growth and expansion opportunities, but it also allows a business to pay off debt quicker, potentially saving on interest fees.

Adopting good cash flow management tools can help you fight fraud

Fraud prevention goes a long way. It may seem obvious, but you don’t want to lose your hard-earned money to fraudsters. Beyond the financial hit, fraud losses can also result in you spending valuable time on insurance claims, and you don’t want to waste time or money on the detective work it takes to find out where missing money went.

Business fraud is a big enemy of healthy cash flow. It causes increased costs, wasted time and disrupts normal activities. When you want to bring money in and move money out quickly, you’ll want to actively work to avoid fraud and ensure your business runs at its very best.

Tips to improve cash flow for your business

1. Pay faster with ACH payments

An ACH payment is an electronic funds transfer that can, in some cases, clear the same day. In other words, it’s a way to send money with increased speed. Switch from prepping and mailing paper checks to making ACH payments to save time and take a tedious task off your plate. Plus, you can schedule most types of payments, including invoices and payments to government agencies, vendors or employees.

2. Deposit checks quicker with Remote Deposit Capture (RDC)

RDC gives you the convenience to deposit money to your account quickly and more securely. You can save yourself time and effort by using your phone or computer to make deposits to your account anytime, anywhere.

3. Send money anywhere in the world with Wire Transfers

Rapid domestic and international wire capabilities can make it easier to conduct business on a global level. Quickly wire funds through Treasury Internet Banking to cut down on the inefficiencies of other payment methods, while expanding your business’s reach.

4. Better defend against fraud with Positive Pay

Be in control of your business payments. Positive Pay Solutions help you manage payment risk from fraudulent checks and electronic ACH items by providing a layer of protection that matches up issued and received checks. You then receive a list you can approve or disapprove accordingly.

Get more information

These great tools are all a part of our Treasury Management services, designed to help your business thrive in an increasingly competitive marketplace. To learn more about how Treasury Management can help your business, fill out the form below, and we’ll be in touch soon.