Running a business means juggling countless responsibilities, but efficient financial management can make all the difference. From hidden costs in outdated processes to the benefits of modern treasury solutions, the right banking tools can save you time and money.
“A great deal of time can be wasted on manual processes,” says Alix Kaufmann, VP, Treasury Management Leader, at First Federal Lakewood. “From streamlining approvals and eliminating accounting tasks to ensuring you are spotting fraudulent activity and earning maximum interest, treasury solutions can make a significant difference in your success.”
Smart Business spoke with Kaufmann about the importance of addressing common challenges business owners face and exploring practical ways to strengthen cash flow, reduce risk and streamline daily operations.
What are some hidden expenses of inefficient financial processes?
Inefficient financial processes can quietly drain your business resources. Many small businesses still rely on manual accounting entries, which consume valuable time each day. For example, if you enter transactions into accounting software like QuickBooks by hand, you’re not only risking errors but also missing out on time that could be spent on higher-value tasks, such as fraud prevention or business growth.
Another hidden cost comes from using outdated or overly complex banking systems. Some banks bundle unnecessary features into their commercial offerings, forcing you to pay for tools you’ll never use. Additionally, failing to use available integrations, like a direct bank feed to QuickBooks, means you spend more time reconciling accounts and less time monitoring for unauthorized transactions. This inefficiency can lead to missed opportunities to catch fraud early, which can be devastating for small businesses.
How can modern treasury solutions save time and money?
Modern treasury solutions streamline payments and reduce risk. For example, ACH origination lets you pay vendors or contractors electronically, often on the same day, without the need for paper checks or costly wire transfers. This method is not only faster but also more secure, as it keeps your bank account information private and encrypted. Switching from checks to ACH payments eliminates the need for physical signatures and postage, and it reduces the risk of lost or stolen checks. ACH templates allow you to set up recurring payments quickly and dual controls mean you can approve transactions from your phone, no matter where you are.
Online wire transfers also save time by letting you initiate and approve wires without visiting a branch or submitting paperwork. The system automatically checks for fraud and your information stays secure within the bank’s encrypted portal. These solutions help you focus on running your business instead of managing paperwork and manual processes.
What are some common issues related to banking and internal workflows?
Many small businesses struggle with inefficient payment workflows. Writing and mailing checks takes time and requires business owners to be physically present to sign them. This process can lead to delays, missed payments and increased risk of errors or internal fraud.
Another common issue is managing unclaimed funds. If a customer doesn’t cash a refund check, you must track that liability for years, and eventually, the funds may go to the state as unclaimed property. ACH payments solve this by depositing funds directly into the recipient’s account, eliminating the need to track outstanding checks. Manual processes also make it harder to reconcile accounts and keep financial records up to date. Without automation, you risk spending too much time on administrative tasks and not enough on strategic business decisions.
Ultimately, these treasury solutions free up your time and your team’s time, allowing you to concentrate on serving customers and expanding your business, rather than getting bogged down in daily financial administration. Discover how simple changes can help your business thrive. ●
INSIGHTS Banking & Finance is brought to you by First Federal Lakewood.
