Why Cashflow Management Should be Top-of-Mind When Planning for 2021
This year, businesses are entering forecasting and planning season facing unprecedented challenges and an uncertain economic outlook. As 2021 draws nearer, it’s important to take the time to sit down with your banker and assess your business’s cashflow operation.
A diagnostic today could mean you’re ready to take on whatever tomorrow brings—and that could mean everything to your business. A great place for you and your banker to start is by looking at your working capital and finding ways to keep more cash on-hand while being strategic about your payments and collections.
Consider These Three Things
As you think about maximizing and protecting your business’s working capital heading into 2021, these three things should be top-of-mind right now:
- Cumbersome payments processes: You’ve got vendors and suppliers that need to get paid—but does doing so slow you down? Does it cost you more time—and money—to pay your bills than you think it should? Automating your invoice-to-pay process could save you both time and money, while also helping protect your business against fraud.
- Cybersecurity and fraud: Recent statistics published from the Federal Trade Commission (FTC) show that cybercrime and fraud against businesses continues to increase. That means that your cash could be at risk. But there’s hope: changes to things like processes, equipment, and applications you use for your payments and receivables can help protect your business from losses.
- You don’t have to solve it solo: Whether you’ve got some ideas on improving your business’s working capital situation or you’re unsure where you should even start looking, you don’t have to do it alone. Partners like your banker, your financial advisor, and your accountant are great resources for recommendations.
It’s a Great Time for a Working Capital Assessment
Your working capital is your business’s lifeblood, so it’s important you manage it right—especially in today’s economic environment. We’d love to help.
To explore how to optimize your business’s cash flow, consider a virtual or in-person Working Capital Assessment with one of our expert treasury management consultants in your community. Together, you’ll walk through various processes pertaining to your working capital and discuss improvements you could make to have a lasting impact for your business.
You can learn more about our Working Capital Assessment process below:
Want to learn more about what you can do to optimize working capital for 2021?