Protect your business from COVID by enrolling in a CMS

In this time of the Covid-19 pandemic, businesses, small or big, are having a hard time managing their operations—from logistics to cash management. As such, anything that could help businesses maintain a healthy cash flow should be given priority. After all, millions of jobs, not to mention a big part of the economy depend on the survival of these businesses.

One such solution to maintaining a healthy cash flow amid the challenges of the pandemic is having a reliable Cash Management Service (CMS). What is cash management? In simple terms, cash management is, managing the day-to-day operating cash flow of a company. It is making sure that 1) companies collect efficiently from their customers 2) companies pay their obligations to their employees and suppliers in a timely manner, and 3) managing excess cash for either short term or medium term purposes.

Cash management is not an easy task and made even more complicated by the pandemic. That’s because many businesses, prior to COVID-19, relied on manual processes which require face-to-face transactions. Unfortunately, lockdowns and restrictions on the movement of people have hampered the day-to-day cash operations of a company as many of the financial and banking services were temporarily unavailable or were operating in a reduced fashion.  This greatly affected the smooth movement of cash, causing customers to move into a contingency scenario, looking for alternative methods to process collections and payments, or having to just wait for branches to reopen.

All businesses, had to ensure salaries were processed, where if their payroll process was manual, this led to employees not getting paid in a timely manner unless the business had an electronic manner of initiating payroll.  Additionally, supplier payments were also affected as check and/or cash payment methods affected the tracking and tagging of accounts receivables if there were challenges in depositing or encashing these in bank branches. These physical cash processes greatly hampered the day-to-day operation of a business.

Inefficient cash management affects the lifeblood of a business’ available operational cash, which may cause a company to cease operating.

It’s now 2021 and thankfully, a lot has changed in terms of how businesses have handled their operations, most importantly their cash flow. That’s because many have seen the benefits of CMS, and how it can help them not only stay afloat but even flourish during a pandemic.

A good example perhaps is the story of Angel’s Burger, which I came across on YouTube when I was searching about how to have a thriving business during a pandemic. A long-time client of BDO, Angel’s Burger shifted to online bills payment last year so its franchisees do not have to go to a BDO branch or in its office to make payments. They simply have to pay online! Because Angel’s Burger is subscribed to BDO’s Business Online Banking, a cash management service of the bank, they are not only able to receive payments on time but also easily track them by simply logging online.

Another CMS product that Angel’s Burger availed during the pandemic was the BDO Corporate Cash Deposit Machine or CCDM. With the help of CCDM, clients like Angel’s Burger don’t need to go to a branch to make deposits. They simply have to put their cash in the CCDM, any time of the day. The machine itself will count the cash, print out a receipt, and automatically credit the deposit to the client’s bank account. Saves them the time of going to the branch and more importantly, keeps employees safe. It is now the bank’s responsibility to physically pick up the cash from the machine. How inspiring and great is that!

By enrolling in CMS, Angel’s Burger was not only able to improve its cash flow but also avoided possible losses that could have hampered its operations and adversely affected its employees. Kudos to Angel’s Burger and hats off to the bank too for offering the right CMS solutions.

Now you may just have a small-scale business and think that your operations will not need a CMS or you may not be able to afford it. You might think that CMS is just for big companies. That is NOT true. As it turns out, even small or medium-sized businesses can take advantage of CMS.

You don’t need the full array of CMS products and services to have a good cash flow, you just need what your business actually needs. The good thing is BDO, as I have learned, not only offers a full suite of CMS, its product and services are also customizable depending on what your business requires.

I am an owner of a small-scale business and a BDO client myself. I have enough personal experience with them to know that they will indeed find ways to help me better manage my cash. Can’t wait for me to know more about their CMS products and services.

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