Improve Your Treasury Management Strategy To Improve Cash Flow

June 22, 2023

A balanced approach to liquidity can help your business stay resilient and flexible — valuable attributes in any economic climate. Innovative treasury management strategies can help take your business there. 

Your company’s plan should be unique, tailored to your needs and opportunities. An engaged relationship banker will work with you to establish strategies to improve efficiencies in your company’s payables, receivables and information reporting. They can recommend advanced digital solutions that simplify these processes and allow your team to conduct business anywhere, anytime, on any device.

Managing receivables

The money coming in powers businesses — and companies need to put it to work for them as quickly as possible. Tools that speed up the deposit of incoming funds can help. A remote deposit capture system can expedite fund collection by scanning checks and electronically depositing them into your bank account. 

Depending on your business, you might also benefit from ACH debit origination, mobile deposit or flexible point-of-sale merchant service solutions — all designed to save time and money in your AR process.  

Managing accounts payable

Current trends, such as teams that increasingly work remotely, have underscored the need for efficiency. That’s part of why more business owners now choose digital solutions that automate the accounts payables process. These tools can ease the resource drain on growing businesses that need to handle complex vendor payments efficiently and reliably.

Strategies that can work in your favor may include:

  • Integrated payables that create a single, automated procedure to consolidate payment instructions from multiple channels. 
  • Same-day ACH payment origination to quickly and securely send payments and control cash flow, especially for small, time-sensitive transactions.
  • Commercial credit cards that can automate payments, simplify invoice reporting and effectively provide a “float” of 25-30 days. 

Information reporting and liquidity

Evolving digital technologies make tracking your cash position and making timely, well-thought-out decisions more straightforward than ever. Applications like mobile and paperless banking, with their convenient reporting features, have become standard for many organizations.

Products using Applications Programming Interface (API) technology are also becoming the norm. Through APIs, systems can communicate to deliver seamless, real-time information (think Uber and apps tracking a package’s delivery minute by minute). Products that use API infrastructure can provide up-to-the-minute balance and transaction reporting from your bank account directly to your accounting system.

Help from your relationship manager

Our expert bankers meet regularly with clients to continually refine our treasury management solutions and tailor offerings to specific needs. Contact your First Independent Bank relationship manager to learn more about what our bank can offer businesses like yours.