Top Banking Tools and Technology for Businesses

In today's competitive business landscape, efficient cash flow management is paramount for businesses. Fortunately, many banking tools and technologies can empower you to streamline your financial operations and optimize your cash flow. Let's delve into some of the most beneficial solutions to elevate your business treasury management.

Account Aggregation: Consolidate your financial picture by linking your various business accounts (checking, savings, and merchant services) into a unified view. This provides real-time insights into all your cash inflows and outflows, empowering you to make informed financial decisions. Basic aggregation is often included in free business banking packages, while enhanced services offering comprehensive data may come with a monthly fee ranging from $10 to $25.

Automated Clearing House (ACH) Processing: ACH processing replaces time-consuming manual checks with electronic payments and collections. This not only saves time and reduces errors but also streamlines your payment processes. Costs typically vary based on transaction volume, with estimates ranging from $0.10 to $0.25 per transaction.

ZEscrow—Digital Sub-Account Management Platform: Ideal for property managers, law firms, title companies, municipalities, and any business that requires client funds to be accounted for separately. This digital platform provides for 24/7 online access to manage sub-accounts and transfer funds as needed. The service also offers automated statement delivery, record keeping, and improved methods for interest tracking and disbursement—no matter how complex.

Positive Pay: Implement positive pay to safeguard your business from fraudulent checks. This service allows you to verify and approve checks electronically before disbursement, minimizing the risk of unauthorized transactions. This service may also have the added feature of protecting accounts from unauthorized electronic debits. Costs vary depending on your bank and transaction volume, but generally range between $10 and $50 monthly.

Lockbox Services: Expedited collections and enhanced cash flow predictability are the hallmarks of lockbox services. Your bank dedicates a secure mailbox to receive your customer checks and remittance advices. This eliminates the need for manual processing, expedites deposit times, and improves overall efficiency. Costs are based on volume and service level, typically ranging from $50 to $200 monthly.

Commercial Cards: Reduce costs and streamline your payments for business travel, entertainment, and other business purchases. Consolidate your annual business spend to increase rebate earning potential. Gain robust data and reporting by using one data management tool for card account activity, reconciliation, and reporting, with upload into your ERP system. This service offers singular spend controls for spend limits, cardholder fraud alerts, and merchant categories.

Virtual Accounts: Virtual accounts simplify receivables management and improve project costing accuracy. These unique account numbers, designated for specific clients or projects, enable easier reconciliation of customer payments. Costs typically vary based on your bank and transaction volume, ranging from $10 to $25 monthly.

International Payment Processing: International payment processing becomes necessary if your business ventures into global markets. This service facilitates seamless cross-border transactions by enabling you to send and receive payments in foreign currencies. Fees depend on transaction volume and the currency involved, generally ranging from 1% to 3% of the transaction value.

Cash Concentration Services: Maximize your earning potential and streamline cash flow management with cash concentration services. This feature automatically sweeps idle funds from various business accounts into a central account, optimizing your available cash balance. Costs vary depending on your bank and account balances, ranging from $25 to $100 monthly.

Online Banking with Advanced Features: Modern online banking platforms like CBNA’s Premier Business Connect offer a secure and central hub for managing your business finances. Access account information, initiate transactions, and manage user permissions, all from a convenient online interface. This functionality is often included in basic business banking packages, eliminating the need for additional monthly charges.

Mobile Banking with Business Features: Enjoy the flexibility of managing your finances on the go with mobile banking apps designed for businesses. These secure apps provide real-time account access, facilitate mobile check deposits, and empower you to approve transactions away from the office. Mobile banking features are frequently included in basic business banking packages.

Remote Deposit Capture (RDC): In conjunction with lockbox services or on its own, RDC enables you to deposit checks directly into your business accounts from your office—no need to travel to a branch to make check deposits. All deposits are reconciled prior to submitting the check images and full record keeping.

Treasury Management Solutions (TMS): A TMS can be a game-changer for businesses with complex financial operations. This comprehensive software suite offers advanced cash flow forecasting, risk management, and investment optimization features. A TMS provides a centralized platform for all your treasury management tasks, granting you robust control and in-depth financial insights. Costs vary based on the features offered and the number of users, typically from $100 to $500 monthly.

The optimal approach to selecting treasury management technology hinges on understanding your business needs. Consider your business size, transaction volume, and financial complexity. Businesses might begin with basic account aggregation and ACH processing, gradually incorporating more sophisticated features like virtual accounts, lockbox services, and potentially a TMS as their business scales. It's always advisable to consult with your bank experts to explore their specific treasury management solutions and identify the ones that best suit your requirements and budget.

By strategically implementing these banking tools and technology, you can empower your business to achieve greater financial efficiency, mitigate risk, and unlock new opportunities.