Grip on financial flows with cash management solutions

A financially sound organisation starts with good cash management. As a finance professional, you want to finally always have clear insight into financial flows yours organisation.
In dit blog find the definition of cash management, why it necessary is, and what benefits cash management solutions bidand. Read how such a solution your helpt to financial processes to improve and thus strengthen the financial health of your organisation.

What is cash management? 

Cash management is all about managing the cash flows within an organisation so that sufficient funds are always available to meet all meet financial obligations. This means that you have the right balance between income and expenditure must find, taking into account investments, payments and unexpected costs. Cash management is thus a continuous process. Cash management is also known as the ‘financial logistics’ of a company. As with the logistics of goods, goes the to the efficient plan and arrange from streams, but then with money. 
An effective cash management strategy focuses on optimising available cash and controlling expenses. This process is closely linked to cash flow: the continuous stream of income and expenditure flowing in and out of your business over a given period, such as a month, quarter or year. We also refer to it as ‘cash flow’.  
 Smart management of these cash flows ensures that your company remains financially sound and can respond flexibly to changes or opportunities in the market. With a good cash management system, companies can strengthen their financial position and minimise risks.  

Waaroma is cash management necessary? 

Whether you run a small business or manage a large organisation, a good cash management strategy is indispensable. As larger amounts and more transactions take place, managing these cash flows becomes increasingly complex. The main purpose of a cash flow statement is to get a picture of how much money the organisation has available to use. Good cash management has several advantages:
 

• Ensures stability and calm within the organisation  

• Creates cost-saving opportunities 

• Makes it easier to control financial risks  

• Strengthens relationships with customers, suppliers and banks 

The three main components of cash management 

Cash management consists of three basic components that together ensure optimal management of cash flows: cash flow management, cash management and balance management.We briefly explain them below: 

• Cash flow management is all about reducing unnecessary movements of cash and improving the return on cash flows. The aim is to use available resources as effectively as possible, without financial waste.

• Liquidity management ensures that your organisation always has enough money to pay bills (on time), and that this is done in the most cost-efficient way.

• Balance management focuses on maximising interest income and minimising interest costs by ensuring that the current account balance remains as close to zero as possible. 

What is a cash management solution? 

An optimal cash management system requires cooperation between different teams within the organisation. Controllers and finance managers bring financial expertise, while operations managers provide insight into operational costs and processes affecting cash flows. IT specialists provide implementation and support for digital cash management solutions, and project managers oversee project-specific budgets. By combining these forces, you ensure a clear and efficient approach and lay a stable financial foundation for your organisation. 
 
A cash management solution can take team collaboration to the next level.This is a software solution that helps companies with real-time visibility into their cash flows and manage them efficiently. It is also known as ‘cash management services’. Such an online platform automates repetitive and time-consuming tasks, allowing teams to work more efficiently. You also reduce the risk of errors through built-in checks and smart processes. 

Save time with automated expense management 

A cash management solution not only helps manage all cash flows, but also gives more control over employees' daily expenses. By deploying digital tools, the process becomes simpler, faster and more transparent.  
This way, you get more control over employee spending with cash management services: 

Establish a clear expenses policy 

A clear expenses policy provides structure and ensures smooth handling of expenses. In it, you e.g. determine which expenditures are allowed, what the limits are and how fast declarations must be processed.

Digitise expense records 

Traditional credit cards have a number of risks, especially when multiple employees use the same card. Consider: 

• Data sharing: sharing credit card numbers and CVC codes between team members increases the risk of fraud. 

• Manageability: it is difficult to keep an overview when multiple transactions go through one card. 

• Limited control: employees can often make payments without managers having real-time insight into them. 

Digitise expense records 

Digital systems allow employees to record expenses easily and directly. For example, they can take photos of bonnen upload to the platform, eliminating manual processing. This saves time and minimises errors.

Check expenses daily 

Reconciling transactions daily ensures that you always keep a grip on your finances. Digital solutions make this process easy and give you instant insight into up-to-date data.

Real-time insight into expenses

By tracking spending in real time, you prevent budget overruns. With a digital system, payments are automatically recorded, so you know exactly when and where money is spent. This allows you to intervene quickly when necessary.

Opt for the cash management solution from SimpledCard 

With digital expenditure management from SimpledCard get a grip on all business expenses of your organisation in one user-friendly platform. You arrange payment cards, budget limits and declarations centrally, giving you time saves and get a clear overview. Real-time insight into spending gives you instant access to full transaction history of employees and you always see the current balance of business payment cards. In addition, you can customise workflows by setting your own cost structures and approval steps determine. This is how you improve expense management, minimise errors and keep a grip on your budgets. 
Want to know how SimpledCard can help your business? Take contact with us or schedule a demo and find out how to make business payments more efficient, secure and convenient.