Cash management is the process of collecting and managing a business’ cash flows from operating, investing, and financing activities. Cash management falls under the ‘treasury’ category and plays a crucial role in an organization’s financial stability. However, the majority of businesses do a relatively poor job in this area. In fact, according to a U.S. Bank study, 82% of business failures are due to poor cash flow management. Granted, some of these businesses fail because they’re unable to grow their revenue, but many fail due to poor planning, oversight, and foresight.
While a strong cash management practice is commonplace for multinational corporations, growing businesses, like fast-paced startups, often face organizational limits–small budgets, limited resources, small finance teams, and ever-changing business structures. Your finance team may be too bogged down by cumbersome, day-to-day tasks, to properly focus on strategic planning and long-term growth, but that doesn’t have to be the case. Some of these time-intensive activities include:
- Managing expenses and bank accounts
- Tracking payables and receivables
- Reconciling payments to invoices
- Bi-weekly payroll
- Project financing and budgeting
This begs the question, “What is Liquid Lite and how do you benefit?”
Liquid Lite is the first self-service cash management tool built specifically for growing businesses. Liquid Lite’s functionality can grow alongside your business and will enable finance teams to better manage their cash, forecast future business needs, and ultimately help scale with the business as it grows into a national, or global power. The benefits include:
- Open and close bank accounts virtually (and instantly) without the typical time or fees associated with account changes.
- Create and restructure a virtual account hierarchy to organize payables and receivables by distributor or vendor.
- Reduce time and money spent on reconciliation
- Gain complete visibility of cash flows through one consolidated platform
- Enhance financial planning and reporting of key financial metrics
Ultimately, Liquid Lite enables your growing business to develop an efficient cash management practice without significantly increasing your head count, your costs, or your reliance on your banking partners. Contact us to learn more about how Liquid Lite can support your growing business clients!