The holiday season can be stressful, no matter how much you prepare. With cash flow a big concern for many businesses during this busy period, how do you manage it and how do you prepare for the slower months that follow?
“Efficient cash flow management is the lifeline of any business, especially during the bustling holiday season,” says Alix Kaufmann, VP, treasury management leader at First Federal Lakewood. “As the rush approaches, businesses face unique challenges in managing their finances, too. Treasury management tools are a great option for these businesses.”
Smart Business spoke with Kaufmann about the helpful tips businesses can implement during this busy time — and afterward.
How can treasury management services help businesses manage cash flow during the holiday season?
Treasury management services offer a suite of tools designed to streamline financial operations and enhance cash flow management. Services like ACH origination allow businesses to issue electronic payments efficiently, whether for same-day or future-dated transactions. This ensures that cash flow is managed securely and effectively.
Businesses can take advantage of other services, like Positive Pay, that monitor accounts for unauthorized transactions, reducing fraud risk during the busy season. Remote deposit services further enhance efficiency by allowing businesses to deposit checks without visiting their bank, ensuring funds are available when needed.
Additionally, some treasury management tools have a reporting aspect that can be incorporated into QuickBooks. This means that when transactions clear your account, or payments have been stopped or voided, the treasury management system will register that change. This service helps you determine which items marked in QuickBooks are clearing and which are being rejected. QuickBooks syncs and streamlines transaction information while eliminating manual accounting tasks, saving even more time.
To handle the increased transaction volumes of the holiday season, businesses can leverage tools such as zero balance accounts that automate fund transfers between primary and subsidiary accounts, which helps optimize cash management and reduce manual work. These tools streamline financial processes and offer fraud protection, making them invaluable.
How and why should businesses take advantage of treasury management tools after the rush?
Post-holiday, businesses often experience a slowdown in revenue. Treasury management services can save time in account management and ensure timely payment while also providing robust fraud prevention, ultimately freeing up time for you to focus on your new year business goals. By eliminating inefficiencies in accounting and cash management, businesses can better manage their financial resources during slower months.
Your banker and a treasury management expert can help determine which products and services fit your business needs best, offering perspectives and tools you currently don’t use to provide efficiencies between your employees and to protect against fraud. Using a tool isn’t a permanent change — you can always test a tool temporarily to see if it truly works with your business.
Education around banking products is key. The banker will be able to offer you new products that could be a good fit for current or future goals. With the right partner, you will get the product and education you need to stay updated on the current market.
What are some key initiatives businesses should prepare for in 2025?
Businesses should always stay informed about upcoming industry trends, economic forecasts and regulatory changes that could impact their operations. Preparing can help you maintain a competitive edge and ensure continued financial health beyond the holiday season. Your banker can act as the ultimate partner. By leveraging treasury management tools and strategies, businesses can not only thrive during the holiday season but ensure a smooth transition into the slower months that follow.
Proactive financial management is key to sustaining business success year-round.
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