If your business generates $10 million or less in annual revenue, there’s a good chance you haven’t had the opportunity to use online banking as a cash management tool. For many small businesses, it’s simply been too expensive.
Historically, a small business owner had two choices when reviewing a cash flow situation: he/she could wait until the end of the month to receive his bank statement, or he/she could call his banker for an answer.
Fortunately, today’s technology makes it possible—and affordable—for small business owners to manage their cash flow the same way large companies have for decades—online and on time.
Banking at the Speed of Today’s Business
Most banks now provide online access to information through the Internet. Online banking lets you bank on your time, whether that’s 10am or 10pm. Simply log on from any computer to:
- View credits and debits posted to your account
- View images of paid checks
- Make electronic payments
- Provide direct deposit payroll
- Initiate monthly tax payments
- Help prevent the payment of fraudulent checks
- Monitor loan balances.
In short, with online banking you can make cash management decisions for your company based on real-time knowledge and bottom-line facts.
By consistently monitoring the company’s cash flow, business owners can easily control the timing of disbursements. This day-to-day information can help you avoid costly overdrafts and embarrassing shortages by letting you know when to liquidate an investment or borrow on a line of credit.
Conversely, daily cash management also helps you to recognize where there’s excess cash on the books, giving you the opportunity to use that cash to pay down a loan or invest a portion of your account to earn additional income.
Cash in on Cash Management
Nationwide, more than 2.5 million companies are classified as small businesses. Those numbers haven’t been lost on America’s bankers. They are continually developing new financial service offerings, including online tools. Small business owners should partner with their bankers to determine which online tools are most appropriate and how those tools can be used most effectively. These partnerships are proving to be time and effort well spent; for small business, there’s never been a better time to cash in on cash management. TPW