This post is part of a series sponsored by InsurBanc.
As you know, in the golf world, “par” refers to the number of strokes a professional golfer is expected to make on a specific hole or course. The more equal hits you get, the more you become an expert. When it comes to managing your agency’s money, it’s also important to stay on par.
PAR: Profitability, Accessibility, Reliability
Profitability, accessibility, and reliability are the three main components needed to properly manage your agency’s cash flow. There are many cash management products on the market that can help you along the way. It is important to work with a good banking partner to help you implement a solid cash management plan.
So how do you ensure that your cash management plan supports sustainable profitability?
First, it is important to have a good cash and cash management plan to ensure that your agency remains profitable. This entails many tasks, including determining the cash position, forecasting cash and settlement. Your banking partner can help by carrying out a financial review of your agency’s cash position and banking services. This review will reveal a specific target balance required to support daily activity. It will also identify other cash management products to improve your ability to effortlessly manage liquidity. Bank Automated Clearinghouse (ACH) units and overnight sweep accounts are two of the services that should be included in your cash management plan.
Second, it is important to have your funds available when managing liquidity for your agency. Easy, fast and efficient access to your funds is essential when managing carrier payments and premium payments. Make sure your plan includes easy access solutions and simplified ways to simplify money transfer.
Then, when providing technical solutions for your cash management plan, remember that reliability is key to your agency. Make sure you identify a technology solution that helps protect money while improving efficiencies and ultimately improving cash flow.
Consider your banking partner as an additional resource that provides the necessary guidance to ensure your agency remains on par as you continue to grow.
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