Is Your Agency on ‘Par’ with Cash Management?

Is Your Agency on ‘Par’ with Cash Management?

  • Article

As you may know, in the golfing world, “par” refers to the number of strokes that an expert golfer would be expected to make on a determined hole or course. The more strokes that are on par, the more of an expert you become. When it comes to managing your agency’s funds it is equally important that you stay on “par.”

PAR: Profitability, Accessibility, Reliability

Profitability, accessibility and reliability are the three key components needed to properly manage your agency’s cash flow. There are many cash management products in the marketplace that can help you along the way. Working with a good banking partner to help you execute a strong cash management plan is important.

So how do you ensure your cash management plan supports sustained profitability?

First, it is important to have a good cash and liquidity management plan in place to ensure your agency remains profitable. This entails a multiple of tasks, including cash positioning, cash forecasting and reconciliation. Your banking partner can help by performing a financial review of your agency’s cash position and banking services. That review will uncover a specific target balance needed to support daily activity. It will also identify other cash management products to optimize your ability to manage liquidity effortlessly. Banking automated clearing house (ACH) modules and overnight sweep accounts are a two of the services that should be included in your cash management plan.

Second, it is important that your cash is accessible when managing liquidity for your agency. Easy, quick and efficient access to your funds is essential when managing carrier and premium payments. Make sure your plan includes solutions for easy access and simplified ways to streamline conversion of funds.

Next, when introducing technological solutions to your cash management plan, remember reliability is key for your agency. Make sure you select a technological solution that helps safeguard funds while improving efficiencies and ultimately improve cash flow.

Consider your banking partner as an added resource who provides guidance needed to ensure your agency stays on par as you continue to grow.

Was this article valuable?

Here are more articles you may enjoy.