Many of our clients are holding fairly high cash cushions in their business. This enables them to respond to the unexpected – whether it’s a drop in sales or an acquisition opportunity. In today’s low interest rate environment, the challenge is getting much of a yield on your short-term cash.
Perhaps a bigger challenge is finding the time to put your attention to this area of the business. Most business owners are pulled in multiple directions, and often have more pressing issues. Can you relate?
For many of our clients we have implemented a simple and effective cash management plan. By accessing institutional rates at major financial institutions and overnight “high interest” accounts, we significantly improve the rate of return on short-term cash. Over time, the extra earnings can make a tangible difference. This minor change could generate enough to pay for a new software program, or a staff appreciation event for example. For larger cash balances, it could be enough to pay a full salary etc.
A few minutes of attention to your cashflow can make a big difference. We would be happy to help.
To learn more about this important subject, check out our Cash Management Services.