Cash Management Menu: Choosing Your Entrée
This post is part of a series sponsored by InsurBanc.
How many times have you sat down in a restaurant, stared at the menu for 10 or 15 minutes, and still had absolutely no idea what you wanted to order? Choosing what you want for a dinner entrée should not be stressful or burdensome. What you need is a definitive strategy that will drive your decision and give you the perfect entrée.
Like selecting your entrée, choosing cash management products requires a definitive strategy as well.
Improving efficiencies, mitigating risk and optimizing cash flow are the three main strategies that every agency owner should consider before making cash management product selections.
The three top cash management products that work best together to support these key strategies are remote deposit capture (RDC), Automated Clearing House (ACH) Network origination and Positive Pay. Let’s take a closer look to learn why:
Remote deposit capture
RDC is one of the fastest growing trends in banking technology, as it allows businesses the convenience of depositing checks from any location with a scanner, computer and internet connectivity. It also ensures those deposited checks are quickly available. RDC can reduce per-deposit costs and improve efficiencies by requiring less time to drive to a bank and sort out deposit slips. This cash management product has proven to be a lifeline for many business owners, particularly during life’s unforeseen disruptions.
Origination via the ACH Network, governed by Nacha, enables agencies to effectively manage their carrier payables and commission receivables. This automated process ensures timely receipt of payments by speeding up the collection process, which in turn allows agencies to forecast and optimize cash flow with minimal effort.
Positive Pay is a cash management service offered by many banks to help businesses detect check and ACH fraud. The service compares checks written and ACHs submitted for processing against records provided by the company. If the information presented to the bank does not match, the bank will not process the item without the company’s review and approval. This cash management tool has proven to help many agency owners mitigate risk against potential financial losses.
Now that you have implemented a sound strategy, selecting the right cash management products for your agency should feel less stressful.
Your only focus right now should be the fun part, which is growing your agency and, of course, making room for dessert.
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