How to Effectively Manage Cash During Uncertain Times

During times of uncertainty, many small businesses find bill payments, invoicing, disbursements and managing cash flow difficult. These concerns can be overwhelming but knowing which products and services are available to you can make managing your day-to-day cash flow easier, even with increasing transfers and deposits.

Business Accounts vs. Personal Accounts

As good practices, business accounts should always remain separate from your personal accounts. Keeping your business finances separate from your personal finances is imperative to cash management and will prevent you from making errors that could potentially affect your personal wealth or the health of your business.

It’s best to use a business checking account for your everyday transactions such as procuring office supplies, paying invoices or depositing payments. This is where most of your cash should ebb and flow.

Business savings accounts are perfect for emergency funds or for saving for larger purchases. You may want to make frequent deposits to build your savings but, unlike your business checking account, you will want to make infrequent withdrawals. By contributing to a business savings account as much as possible, you’ll be able to build your cash reserve to tap into your funds should you run into cash flow issues.

A business credit card is also a good idea. Not only does a credit card offer peace of mind and flexibility should an unexpected situation arise, it may also offer rewards, additional benefits, fraud protection, and more.

Collections and Receivables

With Automated Clearing House (ACH) origination, you can initiate electronic transactions through the National Automated Clearing House Association (NACHA) network and collect ACH payments from customer accounts, improving cash flow automatically. This can also help with cash flow forecasting.

Remote Deposit helps you save time by transmitting scanned check images instantly through an encrypted internet connection to Associated Bank for deposit into your business account. Once received, Associated Bank can credit the deposit to your Associated Bank business account with extended deadlines–all without you ever having to leave your office.

Associated Bank’s Merchant Services small business management tools offer a range of innovative solutions to manage and nurture your business. These tools help with everything from point of sale loyalty programs to contactless payments, online sales and more. Take advantage of the latest technology to better understand your business, help it grow or just make more time to focus on what you love.

Disbursements

Streamline your payment processing by using ACH disbursements. With ACH disbursements, you can deposit money in your own accounts as well as those of employees and vendors while reducing administrative costs, interest and late fees.

A third-party payroll provider not only creates efficiencies within your Human Resources department, they also reduce the burden of keeping up with the differing legislations across all 50 states while taking on the liability for tax calculations and payment for you. Associated Bank’s partner, Paycor, provides one unified technology platform to manage all aspects of your employees from recruitment and hiring all the way through retirement.

A corporate foreign exchange service can give you multiple ways to make international payments, including foreign wire transfers and use of foreign drafts while giving you access to foreign currency accounts.

Capital Management

Consider using capital management tools like sweep accounts, which will automatically withdraw excess funds from your checking account to directly pay down loan balances on a nightly basis. This will help you control debt, reduce loan payment amounts and eliminate overdrafts. Similarly, an investment sweep will move excess funds to overnight investments, which can earn interest.

Cash Management

Associated Bank’s Cash Management team can expertly guide you in managing your day-to-day financial operations. With Associated Connect, you can track important financial data, stay on top of your cash management and generate custom reports that will help you manage your business finances more effectively.

Managing your cash flow is an integral part of running a successful business, especially in uncertain times. Let an Associated Bank Relationship Manager help. Schedule an appointment to learn which cash management solutions are right for you.