Proper treasury management ensures that your business always has access to the cash required to operate—and uses surplus cash efficiently. Healthy cash flow is king and should be a crucial focal point for any small business in Central Indiana and beyond.
Your cash flow strategy should always support your overall business strategy, and if it doesn’t, you need to make adjustments. Whether it’s expanding products and services or increasing your team to handle demand, cash flow has major implications on each and every financial decision you make. Ready to level up your business strategy? Consider these 5 important factors for your treasury management, and be sure to also check out the business bank articles inside our blog.
Cash flow is king when it comes to treasury management. Make sure you and your team ask these critical questions:
There are various ways your clients may pay you—from cash and check to credit card and Venmo. Have you considered which one works best for your business? It’s important to make it simple, easy, secure, and fast. No one wants long waiting periods or unnecessary transaction fees.
Zooming out to your larger business strategy, treasury management includes converting customers from less efficient payment methods to other options that are efficient, cost-effective, and meet your needs.
Good treasury management may also include managing cash flow to better control the use of cash balances and increase earnings on these balances without incurring an unacceptable level of risk.
Whether it’s vendors, staff, contractors or any other means, every business needs a standard practice for how you pay bills and conduct payroll. Having a dedicated procedure that addresses these questions is essential.
These questions all speak to another essential element of treasury management — disbursement. Disbursement is paying bills and other obligations in a timely, cost-efficient manner. On the other hand, if chronic cash flow issues impact when and how you pay others, it’s time to revisit your treasury management strategy.
Bottom line: paying people, partners, and companies on time and in full is good for business.
As with many elements of business, planning is key in treasury management. Proactive entrepreneurs and business owners set themselves up for success by establishing lines of credit and strategic partners for business and commercial loans.
The reality is there may be times in running your business when it becomes a strategic move to pursue additional capital. Before that time comes, consider answering these 3 questions.
Our team here at Citizens State Bank specializes in helping established, and emerging Indiana businesses secure loans and lines of credit that enable you to thrive.
And if you’re still considering what your cash flow strategy looks like, consider scheduling a free financial assessment. It’s one of our favorite ways to position you and your business for success.
Whether you’re asking these questions now or planning ahead for the future, it’s important to consider what you’ll do with surplus cash flow.
If you have a surplus of cash, that’s good! Use it! Be intentional with every dollar so they can be deployed to the most important areas of your business.
Part of your treasury management strategy will consist of information and control around your cash flow. It’s important to maintain a system that ties together all of your cash flow functions and reflects all major movements of funds and account balances.
Consider questions such as:
When diving deep into your treasury management strategy, you will often need to have conversations with everyone who sits at your strategic table — CPAs, banking advisors, and more.
Here are several key treasury management terms that you’ll need to be familiar with when discussing that cash flow conversation.
Understanding not only what these terms mean but how they all fit into your cash management tool belt is key to taking control of treasury management.
Our team at Citizens State Bank wants you to know that you’re more than just a number when you bank here. We know people by name and stand by you at every step of your business’s journey.
That’s exactly why we’ve created a hub of business resources for leaders like you. And, we regularly refer our customers and clients to other trusted places like The Small Business Association Online Learning Center. They’ve also developed a myriad of helpful resources about business banking—including treasury management.
To ensure the success of your business, you need to have the right experts seated at your table of advisors.
If you have questions about treasury management for your business, take a look at the services we offer here and schedule a no-obligation conversation.
Our skilled Treasury Management Officers will be happy to take a seat at your table as one of your trusted advisers and help you determine what you need to make your business thrive.
Capture the 5 essential elements of treasury management discussed above inside this easy-to-review infographic designed for Central Indiana businesses like yours. Request your copy here.
The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.