The vital process of collection and management of cash flows done by an individual or an organization is known as Cash Management. Talking of Cash Management in 2021 where the world was already moving gradually to a cashless era, the hit of the global Pandemic in 2020 accelerated the contactless transaction. However, logistics such as people with no understanding of online transactions of tapping and paying and the fact that no nation has gone totally cashless makes the existence of Cash narrowed but existing for a long time. One of the pro business tips for dealing with a big load of cash quickly and accurately is by using a mixed denomination bill counter and sorter.
Need of a solution for cash management
For the financial stability of a business, cash management is the key aspect to look upon. Banks are the typical prime finance managers in the market full of a variety of financial service providers for treasury management. For most returns and efficient use of cash a cash management solution should be chosen wisely.
Identifying the best solution
Standard Chartered was the best cash management bank and Serrala was the best system & service provider internationally as per the Global Finance 2020 report released on the world’s best cash management. To assess a process for the best cash management solution one needs to check the entries of banks, providers, and reviews of corporate executives and financial technology experts. Furthermore, market share, profitability, customer support, reach, pricing, and product innovation strategy criteria should be checked thoroughly.
One basic thing to understand here is that cash flow operates heavily on working capital which depends on received and paid accounts. Seeing the pace with which the world is moving into a digital era it is undeniable to accept the significance of fintech trends transforming the cash management market. The global payment report by McKinsey stated the cash flow change in 2020 took place four to five times faster than earlier.
Cash Management Account
It’s an alternate platform to traditional bank accounts to clarify cash management. Their facilities include digital advisors, mobile trading applications, and online investments. A cash management account works by keeping your deposited money invested across various partner banks. Benefits of this type of management include online transactions, direct deposit, no charge ATM service, and ease of third-party access for payments.
There is a large variety of CMA’s according to your financial goals like Betterment, which provides up to $1 million FDIC insurance with no monthly fees, no minimum balance, and interest up to 0.30%. Similar to CMA, SoFi provides up to $1.5 million FDIC insurance with no monthly fees, no minimum balance, and interest up to 0.25% to look at.
Contrary to CMA, interest-bearing checking accounts generally don’t present any rates in comparison. Few services like accessing checkbooks, ATM services, online management of accounts through mobile or laptop are provided by both a CMA and a checking account. Although checking accounts keeps your bank accounts and investments separate, unlike cash management accounts.
An important thing to note is that some cash management accounts require high minimum balance maintenance. Chime provides such an account that partners two banks collectively to offer savings and checking accounts without any monthly fee and minimum balance requirement besides giving access to over 38,000 fee-free ATMs across the United States.
Seeing the global cash flow pattern you need to eye your strategy wisely as per the payables and receivables money flow of your business keeping in mind the advantages and concerns of the modern platform with future proof solutions. Empowering technology is staring at you, you need to learn and channelize your intake for the account that offers ease of accessibility with the best interest rate.