Cash flow management means monitoring your revenue streams and your expenditure. It helps you keep track of your financial position and allows you to form plans that can make profits.
It is difficult to manage cash flow while also running a business. Here are some bank services that can lighten your burden.
1. Daily Cash Flow Management Reports
Analyzing everyday bank account activities like deposits, withdrawals, etc. is critical for managing cash flow. Getting this service will help you keep track of these activities without any accounting errors.
You will get comprehensive accounting data compiled into reports for expenditures, deposits, sales, and any other transaction from your account. This will aid you in tracking your financial performance on a weekly basis and therefore, adjust your short-term goals and improve performance.
Similarly, managing accounts receivables and payables is critical to your cash flow management. It is important to know about dues that are hindering your revenue streams. You will get a service that can keep a track of these for you and ensure that you know about all dues and pending payments.
2. Credit Card and Bank Statements Reconciliation Report
In this service, the bank will go through every credit card transaction that has taken place during the financial year. They will compare it to your internal records. In case of a mismatch of transactions, you will be informed. In this way, you will be able to prevent any discrepancies in your financial statements.
Further, in a similar manner, the bank can compare the account balance and transactions with your company’s balance sheet. If there are any discrepancies, you will be immediately notified. This will ensure that your company’s financial records are immaculate and help you get a clear picture of where you stand financially.
3. Risk Management Statements
It is not always easy to spot whether or not your company is walking on a financial tightrope. However, it is important that you are fully aware of any financial risk you are in order to avoid long-term financial problems.
You can get a service where the bank analyses your financial records and creates comprehensive risk statements. They will analyze these records and highlight any vulnerabilities that can cause financial risk.
Thus, you’ll know what you need to look out for and will be able to avoid landing in financial trouble.
4. Cash Flow Budgeting And Forecasting
Cash flow budgeting is a critical financial process. To make correct estimations, the accuracy of financial records is of utmost importance. If they are not correct, the budget estimations would be off the mark and will lead to financial problems in the future.
Getting this service from the bank would ensure that they go through all your reports and certify their accuracy before budgeting your cash flow.
Forecasting services will help you in getting a clear estimation of your cash flow after a certain period of time. The bank will closely look through your revenue and expenditure and provide a detailed report with forecasts about your financial situation in a given timeframe. It will help you in adjusting your goals and plans.
5. Fraud Management
Having your money get misplaced or lost in some fraudulent scheme can mess up your entire cash flow management.
You will have to go back to the drawing board and create a new budget and estimations. In order to avoid a situation like this, you should make use of fraud management services.
If you avail of them, all your transactions must be closely monitored. All of your transaction details – channels, users, and accounts – will be screened. Any suspicious activity will be flagged and you can take immediate action.
6. Electronic Payments Management
Managing and reviewing payments by traditional methods is pretty time-consuming and can become tiring. Many banks offer this service where they will electronically manage your payments on your behalf.
The system is integrated with your bank account and thus, makes it easier to keep a record of every transaction and manage your cash flow.
Over To You…
These services will make cash flow management very easy for you. This, in turn, will help you keep track of your finances and ensure that you come up with plans and policies that will enable you to earn profits and do better.