Cash Management Technology
Cash is also known as money, in physical form. Cash usually includes bank accounts and marketable securities, such as government bonds and banker’s acceptances. Cash management is the corporate process of collecting and managing cash, as well as using it for investing. It is a key component of ensuring a company’s financial stability and solvency.
Developing cash management solutions
Simplify—Leverage enterprise -wide software for multiple purposes, consolidate multiple connections, minimize points of failure.
Aspire— Set a high bar. Just because something has never been done before, don’t assume your organization’s needs cannot be met.
Seek—Understand best practices. Look for more than just transaction execution. Focus as well on opportunities to improve visibility, analytics and control.
Partner— Don’t try to solve all of your problems. Engage your bank as a partner in innovation.
As businesses continue to invest a large amount of time, resource and money into increasingly innovative payment solutions, ensuring that you have a watertight cash management programme is now more important than ever. Three of the most important considerations making their way to the top of the agenda for 2016. Polymer, Reducing shrinkage, Intelligent cash drawer Cash management is the treasury function of a business, responsible for achieving optimal efficiency in two key areas: receivables, which is cash coming in, and pay ables, which is cash going out.
Functions of Cash management
Receivables Management-When a business issues an invoice it is reported as a receivable, which is cash earned but yet to be received. Depending on the terms of the invoice, the business may have to wait 30, 60 or 90 days for the cash to be received.
Payables Management-When a business controls its payable, it can better control its cash flow. By improving the overall efficiency of the payables process, a business can reduce costs and keep more cash working in the business. Payables management solutions, such as electronic payment processing, direct payroll deposit, and controlled disbursement can streamline and automate the payable functions.
Treasury professionals continue to monitor these developing trends. As next generation information management solutions emerge, they will help corporate treasury reach the next plateau from which to enhance bottom-line performance. Cash management information technology is at an inflection point, with a convergence of trends dramatically changing the information technology requirements and aspirations of corporate treasurers.