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Use Tech to Improve Cash Forecasting and Liquidity

Use technology to improve cash forecasting and liquidityWe’ve come a long way since the days of quillpen bookkeeping entries, yet many businesses still fail to take full advantage of all the tools available to streamline cash management.

If yours is one of them, consider how leveraging available technology can help keep your cash flow healthier, expand your opportunities for growth and perhaps even lower your costs.


Contact a Business Banking ExpertGet Cash Management tips from one of our Business Banking Experts. Contact Us Today!


First Step: Establish Goals and Processes
Efficient cash management involves not only the ability to view snapshots of your organization’s current position, but also to consider future positions based on reasonably accurate forecasts of inflow and outflow. Analyze how purchasing, payments and receivables are managed to help you get a better handle on how long each step should take and identify areas that can be streamlined and automated using cash management tools.

You may find that improving cash management largely comes down to two basic tasks: speeding up collections and efficiently processing payments.

Match the Tool to the Task
Speed up accounts receivable (AR) processing. Rather than mailing paper invoices to customers, consider emailing bills that can be paid through automated clearinghouse (ACH) transactions rather than writing checks. This saves on postage and cuts down on manual entry.

For those customers who insist on check payments, you have a couple of options:
  • Lockbox. All receivables are routed to a post office box assigned to American River Bank. Checks are processed and automatically credited to your account each day. This reduces the need for your staff to open envelopes, prepare deposit slips and get them to the bank and can cut days from receipt of payment to deposit in your account.
  • Remote deposit capture. Checks still arrive at your location, but can be securely scanned in and deposited to your account by your staff, eliminating trips to the bank to make deposits.
Optimize accounts payable (AP). Once you negotiate the best terms you can with vendors and suppliers, you may not have much more leeway regarding terms.  However, you may be able to automate AP to reduce the internal costs of processing payments and keep better track of when significant outflows are expected. Consider:
  • Converting paper invoices to electronic versions upon receipt.
  • Setting up a system that automatically matches purchase orders against invoices to avoid overpayments and flag incorrect or fraudulent vendor invoices.
  • Making sure that AP data is immediately visible to your cash management team so they can use the information to forecast, plan and adjust as needed.

Contact a Business Banking ExpertGet Cash Management tips from one of our Business Banking Experts. Contact Us Today!


Cash Flow Tool KitCash Flow Tool Kit 
American River Bank makes it easy to understand cash flow basics and determine your cash flow position.

Learn more about cash flow. Why is cash flow important and how often should you prepare a projection? Read more about it or watch our Cash Flow Video .

Calculate your cash flow. Determine the cash flow generated by your business with our Cash Flow Calculator. Use the calculator for a look at your current cash flow and print reports for your records.

Schedule a REACH Business BlueprintSM meeting. Leverage the business expertise provided by American River Bank and ask for your custom REACH Business Blueprint! A blueprint calculates the four ratios you need to know to run your business efficiently and compares it against industry benchmark data. But more than that, we will discuss with you two to three areas of opportunity and help you set goals to reach greater success. Learn more>>

We’re Here to Help
With a suite of products from online business banking to cash management tools, we have the expertise and resources you need to help streamline your cash flow.  Learn more about our Cash Management Services or contact a Business Banking Expert .