Cash Flow Performance and Solutions

Hand putting money coins stack growing saving money for purpose concept

If cash is the lifeblood of business, cash management is the beating heart that powers its vitality. Especially during economic downturns, with the cost of capital rising, the key to financial stability is efficiently collecting, applying and disbursing cash to maximize its availability and avoid the risk of insolvency.

Generally the purview of business managers, corporate treasurers and chief financial officers, much of the legwork is done by AR managers and collections teams. To improve cash flow performance, it’s important to apply effective cash management solutions to help generate accurate forecasts and streamline collections, among others.

Businesses in today’s economic environment are struggling with A/R and collections. If your DSO is climbing or you struggle to grow at the desired rate, you likely need to find areas of improvement in your cash management practices. After all, revenue isn’t real until you have the money in your account.

The Cash Management Process

Cash management, sometimes called treasury management, is essentially the process of ensuring that cash flow coming into your business is greater than the cash flow going out of your business. It is the process of collecting and managing cash flows from the operating, investing and financing activities of a company. It is vital to an organization’s financial stability.

The main objectives of a proper cash management process for mid-market companies include the following:

  • Control cash inflows and outflows

  • Maintain cash needed for operations

  • Keep funds safe in all economic conditions

  • Finance expansion and growth

  • Leveraging the collective spend

Achieving these objectives requires robust and accurate cash flow forecasting, real-time strategic financial planning and precise tracking.

Cash management is important because insolvency is the primary reason firms go bankrupt. But, efficient cash management means more than just preventing bankruptcy. It improves the profitability and reduces the risk to which the firm is exposed.

Companies suffering from cash flow problems have no margin of safety in case of unanticipated expenses. They also may experience trouble in finding the funds for innovation or expansion; it is easier to borrow money when you have money. Finally, poor cash flow makes it difficult to hire and retain good employees.

Cash Management Solutions

In even the most well-run business, there are opportunities to improve cash flow management. Costs can be trimmed and efficiencies can be found in probably every corner of your organization, but that will only get you so far. One other solution is to improve the cash flow literacy of all your teams and make each person integral to building cash flow performance.

Controlling cash inflows is a cornerstone of effective cash management and the most effective move you can make to supercharge cash flow performance is to eliminate outdated, labor-intensive manual processes that bog down your collections team.

AR automation helps you predict, manage and collect cash. It integrates with your ERP and CRM tools to unify your billing and collections processes. Reporting is faster and more accurate, and your collections team can more easily prioritize their work and communicate with other teams.

Automation makes it easier and more pain-free to scale your business. You can do more work with fewer people, and you can attract better talent by using leading technology.

To get all these benefits and see cash management improvements, choose the Leader in the AR Automation Software category as rated by G2. Tesorio has also earned distinction for Easiest to Use, Easiest to Set up, Easiest to Do Business With, Best Support, and Users Most Likely to Recommend by G2.

Tesorio’s Cash Flow Management

Tesorio is the top-rated AR automation software that helps you streamline your collections, improve your DSO, and unlock cash from your balance sheet—automatically. You’ll save time and money by eliminating inefficient manual processes, as your AR team will be able to spend time on more important tasks than data entry.

Focusing on improving customer relationships helps put you at the front of the line to get paid faster, which is integral to improved cash management. Tesorio’s Financial Care Center provides an interactive self-service billing experience that makes it simple and convenient for your customers to pay you.

Tesorio’s automated AR Forecast gives you AI-powered predictability to anticipate payments based on historic behaviors, which gives you the visibility to better strategize and execute your business plan. And, automating your cash app process with Tesorio puts cash in your pipeline faster to help you control disbursements.

With Tesorio, you’ll be up and running in days, and most companies find it pays for itself within the first 90 days.

Take action now to supercharge your cash management performance. Request a Tesorio demo today.