Cash Flow Management

03/18/2015

Finding Answers From A Familiar Source

A Fifth Third Business Banking client recently found itself in the enviable position of landing a large new corporate account. Adding one of the nation’s big box-store retailers to its roster of clients would help propel this manufacturing business to the next level – the kind of opportunity every owner works day and night to achieve.

But unbeknownst to the business owner, the retail chain has specific procedures that must be followed to process orders and payments correctly. During a meeting to discuss business opportunities – including the deal with the national chain – the Relationship Manager cautioned the client to closely research the retailer’s payment procedures. This conversation helped the business develop new processes to assure proper ordering and an uninterrupted stream of income.

Managing cash flow is a challenge every business faces, no matter what size or industry. But businesses have a reliable source to help them maximize access to cash when it’s needed most – their banks.

Financial institutions are gathering the information and experience they acquire from individual business case studies to create proven best practices that can help address the cash flow management needs of a wider audience. What works in manufacturing could also help a hardware store, coffee shop or medical office better understand payables, receivables and day-to-day cash reserves.

In a local restaurant franchise, the handling of cash sales was impacting not just cash flow but overall profitability. A steady stream of business continued through the doors and a large number of employees were handling cash transactions. The store manager and other staff spent an inordinate amount of time verifying receipts and making frequent bank deposits.

During the store manager’s consultation with their Relationship Manager where they discussed these cash-handling challenges, the Relationship Manager described a similar experience that another client, a church, had with managing cash transactions and a solution they’d put in place to better manage their high volume of cash deposits. With the help of the Relationship Manager, the store manager implemented a currency management solution that simplified daily cash management and deposits, while helping reduce drawer theft. With cash flow issues addressed, restaurant management and staff actually had more hours of productivity, allowing them to better focus on food orders and improving their overall customer experience.

Your banker can help you work through cash flow challenges and help develop solutions based on your needs, your vision, and your business goals. And there may be other professionals in the networks of you or your banker who can help address additional business needs, such as accounting and legal advice. These resources can work together to share new strategies, financial practices and technologies to better manage cash flow today and into the future.

When it comes to managing day-to-day business needs, there are few priorities more important than cash flow. Your banker can help you implement best practices that help improve your cash flow management while taking less time and attention away from your core business.

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