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    1 Reply Latest reply on Nov 29, 2016 8:27 AM by moderator_mel

    Common Cash Management Services

    moderator_mel Tracker

      Automated Cash Handling: Using specially designed software to deter theft of cash drawers. This costly service is in decline due to internet use.

      Advanced Internet Services: An intricate system designed for management use that isn’t necessarily available for consumers.

      Wire Transfer: Instantly and electronically send money via wire transfer. This method of cash management also allows for settlement instructions to be included in the transfer.

      Armored Car: Security personnel can pick up large sums of cash and transport it to the preferred financial institution.

      Sweep Accounts: Excess funds can earn interest if they are transferred to a money market mutual fund at night and then are moved back into the company’s bank account the next morning.

      Positive Pay: Banks pay checks listed in a shared ledger, according to the instructions to reduce check fraud.

      What’s your favorite cash management service? How does it help your business? ~Moderator Mel

        • Re: Common Cash Management Services
          moderator_mel Tracker

          I did a little more research and found a few more cash management services:


          Zero Balance Account: This is a system that was created for large retail chains. Each branch is then assigned an account number and management makes store deposits into those individual accounts. At that point, all of the deposits are then swept into the main account, allowing the home office to see sales totals for each subsidiary. Using the “ZBA” system is appealing because businesses are able to obtain better interest rates.


          Lockbox: Companies that receive a large amount of payments via mail can have their bank check their mail and deposit all incoming checks.


          Account Reconciliation: Large businesses may find it difficult to reconcile their accounts and determine their true balance. Banks have developed a statement system that shows all of the checks that have cleared as well as those that have not. ~Moderator Mel