Cashing In on Treasury Management Technology
By Vicki Parker and Maureen Gallagher
Now more than ever in today’s economy, companies are striving to improve the cash flowing through their organizations and to optimize how cash is deployed and invested. Companies of all sizes are turning to their banks to provide them with an array of cost effective and efficient cash and treasury management services.
Your bank’s treasury management officer can help! He or she is the expert who can assist in reviewing your company’s current depository relationship with the bank and can make appropriate recommendations to help streamline the sources and uses of cash to help maximize working capital. If your business hasn’t had a treasury management “check up” in a while, now may be a great time to schedule an appointment.
DID YOU KNOW?
In the last several years there have been huge advances in banking technology that provide efficiencies and cost savings for commercial businesses. Most notably among these is remote deposit capture technology that utilizes scanning technology to effect a deposit consisting of checks and money orders electronically to the bank right from your office. Deposits are accepted and processed in a secure environment. As well, there is no need for a business owner or employee to spend time driving to the bank to wait in line to deposit non-cash items.
Remote deposit is a great solution for small business owners and companies with late day deposits as it extends the timeline for initiating deposits to the bank. For example, most banks close out the business day at about 4:00 pm. Items submitted through remote deposit can be accepted into the early evening hours, sometimes as late as 7:00 or 8:00 p.m. In addition, many remote deposit products do not require a manual deposit ticket and can be electronically endorsed.
Worried about what to do with cash? Large recipients of cash transasctions such as retailers, restaurants and large churches can take advantage of an on-site virtual vault product that is used to secure and count currency and coin. An armored car service provider then empties the vault and securely delivers the cash deposit to the bank’s vault.
CREDIT CARD PROCESSING HITS THE ROAD
Did you know that you can accept credit cards from just about anywhere? With the advent of handheld authorization devices and web based card processing applications, you are in business! There are a number of new handheld devices to select from that are relatively inexpensive and easy to operate. By offering credit card as a payment option “on the spot”, you speed the collection of receivables to your bank account and improve your company’s cash flow. Your banker can help you evaluate options to help you get the best deal.
Another innovation in banking is the use of escrow management services, or sub-accounting, which allows for the use of one account with subsidiary accounts to track deposits and disbursements by location or sub-account holder. This service is a great solution for the title, legal and retail industries, but is also useful for companies with several physical locations or divisions that wish to monitor transaction activity by client or location without the need to open (or close out) multiple accounts.
WHAT ELSE?
Another recent innovation is the use of mobile device technology to conduct banking business. Corporate treasurers and CFOs can utilize this technology right from their cell phones or PDAs to check balances, make transfers, pay bills and even release wires and authorized payroll files.
Leveraging technology in the area of cash management can help companies improve efficiencies, get better and timelier information about the flow of funds, and improve the bottom line of the business. Utilization of the latest technology may cost next to nothing if a company puts its deposits to work for itself. Most banks offer an earnings credit for non-interest bearing balances to help offset or even eliminate bank service charges. Talk to your banker today!
Vicki Parker is a Senior Vice President and Senior Commercial Banker at American Momentum Bank. Vicki has over twenty three years of experience helping businesses with their commercial banking needs in the Tampa Bay area.
Maureen Gallagher is a Senior Vice President and Treasury Management Sales Manager at American Momentum Bank. Maureen has over twenty years of commercial banking experience.
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