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Cash management basics 2 min read

What’s cash management & why do I need it? Better yet, how can I improve it?

Our experts share some fundamentals for keeping the cash flowing.

Cash management is essentially money in, money out – the process of collecting and managing cash flow, and the potential risks to it. And in business it’s a key component of a company's financial stability.

 

Landon Feser, Senior Manager, Cash Management at the Edmonton Main Banking Centre describes cash management as the “glue” of CWB’s full-service banking model.

 

“When you look at the whole scope of what we offer, we’re helping clients with their receivables, supporting them in having the ability to meet their payables, helping them grow their funds through investments, and helping them protect their hard-earned dollars,” says Feser.

 

“Cash management isn’t just how much cash do I have right now, it’s taking a step back and viewing the full picture of what your cash flow needs are and ensuring you can access funds when you need them and aren’t running yourself dry as a result.”

 

He offers this quick primer on what day-to-day cash management means in terms of CWB’s products and services:

 

Payments in 

  • Cash
  • Remote deposit capture (RDC)
  • Mobile RDC
  • CAF
  • e-Transfers
  • Incoming wires
  • Payfirma merchant services
  • Convera

Payments out

  • CAFT
  • AGLC payments
  • Online bill payments
  • Online tax payments
  • Cash
  • e-Transfers
  • Outgoing wires
  • Convera
  • CWB Business VISA 

Information, security, & controls 

  • Risk management advice to support clients
  • Implementing proper controls for the online tools that CWB offers
  • Business User Administration tool
  • Work-flow approval

Banking platforms & channels

  • CWB Business / Enhanced Online Banking
  • Mobile banking
  • Cash management accounts
  • CWB Online Wire Service 

Feser says clients regularly seek his help with improving their cash flow and explains it’s about looking at what impacts your cash cycle – including what’s drawing on your time and wallet. Take writing cheques for example, which he says is a common pain point for clients.

“Cheques are actually one of the most expensive means of making payment – from the physical cost of the cheque to the postage costs and delivery,” says Feser. “They’re also increasingly prone to fraud if a cheque is lost or dropped, and there can be disruptions or delays due to processing errors or holds.” 

He recommends Interac e-Transfers or Customer Automated Funds Transfer (CAFT) as good alternatives for making payments that are more cost-effective, secure, and efficient. He adds that through CWB’s online banking, workflow approvals can be put in place for these payment methods to align with the business’ authorization structure. 

Insights like Feser’s can become part of an overall cash management strategy. Giselle Pieczonka, Relationship Manager, Cash Management at CWB’s 
Winnipeg Banking Centre gives an overview of what putting this kind of strategy together for her clients can look like from the bank’s side. 

“We want to make decisions that are strategic for our clients and that will also put them in the driver’s seat. We look at what’s happening now, in the short term, and what their future plans are going to be. For example, we don’t want to tie up a client’s cash too long in an investment just because it’s a good rate of return,” she says. 

In developing the plan, Pieczonka explains she regularly works with team members from different service pillars to examine all aspects of a client’s unique situation. This can include collaborating with the commercial relationship manager, cash management side, and the wealth team – where the conversation can involve not just growing funds, but also succession planning.

Have more questions? Let us know here!