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What is cash management?

At its most basic, cash management is the management of cash – your business’s ability to collect it, handle it, and use it. But it’s not only actual paper bills and change. All of your liquid assets, anything available to spend, fall under the umbrella of cash management. And knowing when money will be coming in, when it will be going out, and where any gaps might arise in the process is essential to keeping your business running smoothly.

  • Relying on loans and credit to cover minor financial shortfalls can result in major expenses later on.
  • You could miss out on opportunities for growth if you don’t know to prepare for financial surpluses coming in the future.
  • The stress of searching for cash to cover unexpected expenses can lead to poor decision-making that could harm your business down the road.
  • Late or missed payments – even if you’re able to make them up later – can damage your credit score and your reputation with your vendors and suppliers.

You need to know how much money is available to you before you can start spending it – but that’s just the tip of the financial iceberg. You also need to know when it will be there, and for how long, so that you can prepare for lean times and schedule growth and investment for times when you’ll be flush. All of this requires close analysis and planning that Back Office Center’s cash management services provide.

Why should I trust my cash management to GraphX?

You can’t predict the future. And we can’t either, really. But our team of accountants and analysts, backed by state-of-the-art technology and operating under industry best practices, gives you the next best thing. Relying on our expertise and resources to plan for financial challenges and opportunities down the road allows you to focus on running your business.

Cash management involves a lot more than what’s in your wallet. Accurate cash management involves information from every account, invoice, and lockbox under your desk to make sure that all of your liquid assets and their movements are accounted for. You could expend time and resources to collect all of that information, but you have other important things to do. With all of your accounts close at hand and your business-critical documents imaged and stored, we’re able to maintain records and make necessary analyses in a manner that’s both time- and cost-efficient.

We monitor financial issues outside of your business, too. While your accounts and transactions are an important measure to track, we also monitor the financial environment surrounding your business activity. When economic circumstances threaten that could affect the way your company manages its money, we’re able to come to you with proactive suggestions and cash management solutions to adjust your operations as needed to ride the financial tide.

We have you fully covered. Our comprehensive system and suite of financial services can address all of the many factors that affect income and outlay. Accounts payable and receivable, statement reconciliation, payroll – with all of your crucial functions handled by one expert team, within one state-of-the-art system, you can feel comfortable knowing that your cash management needs are being addressed from an accurate and complete view of your financial situation.

Daily Cash Flow Maintenance

Ongoing daily bookkeeping is an underappreciated foundation for effective cash flow analysis and planning. Tracking and recording transactions as they take place allows for an accurate assessment of your financial situation in real time and makes long-term analysis down the road easier and more accurate.

  • Sales and deposits
  • Payments and withdrawals
  • Petty cash transactions
  • Cash flow reports

Sales and deposits. Accurate records of receipts, purchase orders, invoices, and deposits to provide a picture of the money that has come into your account and the money that hasn’t come in yet.

Payments and withdrawals. Carefully tracking one-time and recurring expenses and monitoring the outflow of cash isn’t just essential for knowing how much money you have on hand – it can also help detect questionable withdrawals, and withdrawals by questionable parties, to protect you from fraud from parties unknown or even your own employees.

Petty cash transactions. Petty cash transactions can be an unexpectedly tricky part of cash management because they involve actual cash – money kept on hand to take care of minor or last-minute expenses. That makes it particularly important to log withdrawals, receipts, and deposits and to monitor the status of the cash box regularly – because those particular assets could easily walk away in someone’s pocket, intentionally or unintentionally.

Cash flow reports. To keep you constantly informed, our cash management specialists organize all of the information gained from day-to-day transaction monitoring and assemble it into reports that tell you at a glance what you need to know about the status and potential of your accounts.

Account Management

Cash management is complicated by money in transition – funds earmarked for bills, payments expected to arrive from customers, credit card purchases that won’t be charged until the following month. Keeping those transactions organized, and keeping the transition periods as brief as possible, makes for more effective current operations and future planning.

  • Accounts payable and receivable
  • Account reconciliation
  • Credit card reconciliation

Accounts payable and receivable. Accounts payable and receivable aren’t cash – they’re the bills and payment obligations that will result in financial outlays, and the invoices and sales orders that will result in income. Back Office Center ensures that bills are paid and receivables are collected in a timely manner to give you an accurate picture of your financial position – and to put liquid assets into your account where you can use them.

Account reconciliation. By comparing your internal records and transactions with the records provided by your bank, we can make sure that you always have an accurate accounting of available cash. Surprises like overdrafts and missed payments can be avoided when you know the financial picture provided by your internal records and the one provided by your bank records are identical.

Credit card reconciliation. Credit card reconciliation can be a delicate task – it has to account for transactions happening now that will require funding in the future. That makes it all the more important that your records of credit card transactions and payments match up perfectly with the statements provided by your credit card company and bank.

Budgeting and Planning

Cash flow management is both a short and a long game. The day-to-day monitoring of even the most minor transactions establishes a record that can be used to assess past business operations and plan for future ones.

  • Cash flow budgeting
  • Cash flow planning
  • Risk management

Cash flow budgeting. We look at all of your expected income and outlay not just in terms of how much it will be, but also when it will make it into your account. That timing is key, because a large payment from a customer will be a lot less helpful if it arrives after all of your bills are past due. Back Office Center helps you plan for those occasions, whether it means trimming your budget, seeking external funding, reaching into savings, or finding some other source of additional income to keep operations running steadily even when income isn’t.

Cash flow planning. Cash flow planning gives you a detailed and precise picture of future cash inflows. We provide monthly reports to help you plan for future investments, fundraising, and expansion.

Risk management. With cash just one asset and one aspect of a company’s financial position, cash management has to have a place in the context of other factors – investment strategy, external funding, even government regulation can influence the amount and type of money you can or want to have on hand. Our risk management solutions help you anticipate challenges and opportunities down the road that could cause you to adjust your cash management strategies.

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