Cash Management Menu: Start with the Appetizer

By | September 6, 2022
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This post is part of a series sponsored by InsurBanc.

Selecting the right cash management products and services for your agency is like navigating a menu from your favorite restaurant. It is important that you start with the appetizer. An appetizer is generally a small-portioned first course of a multi-course meal. Appetizers connote more is to follow and often complement your entrée selection.

The best cash management appetizer to start with for your agency is a financial review. This would typically be conducted by the banking partner who helps you to make the right cash management selections for your agency. The financial review is an opportunity to take a comprehensive look at your finances as well as to evaluate efficiencies and cost-saving strategies to help determine whether any changes need to be made.

So how is a financial review prepared and what does it uncover?

Your banking partner will first need to analyze a couple of months of your existing bank statements. In addition, they will need to gain greater insight into your current plans to sustain and improve cash flow for your agency. Based on their findings, they will prepare an illustration that may uncover hidden costs and opportunities to maximize returns. They’ll also recommend selected services needed to improve efficiencies while minimizing risk for your agency.

This review process is important because life events and changing priorities and goals can affect your financial strategy. A good banking partner can help recommend revisions to your plan.

Once the review is finalized, your banking partner will ask you to review their findings and recommendations. At this time, you may have new financial goals you want to target or goals that could be downgraded in priority. You might also feel that certain financial goals are creating too much of a strain on your agency.

This is also an excellent time to ask questions about investment strategies and your current banking solutions. You may learn about new cash management products and solutions that could fit your agency’s growth plans. There are many cash management products and solutions to choose from, and reviewing these with your financial partner will help make your selection process so much easier.

Conducting an annual financial review is a worthwhile habit that keeps you updated on your financial progress and helps you plan for your agency’s future.

So, remember, don’t skip the appetizer before moving onto the entrée. A financial review is a great way to ensure you meet the goals necessary to sustain a financially healthy agency.

Bon appétit!

Review Patricia’s article introducing the cash management menu here.

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