Cash management is a service that banks may offer certain clients, often large businesses with complex financial needs. Often times these clients are able to perform functions and benefit from services that normal individual clients and small businesses do not have access to. In order to choose the best cash management account, it can be helpful first to determine the financial needs of your business by deciding which services you can benefit most from. It can also be helpful to choose a bank you trust and that feel comfortable working with.
There are a number of different services that can be offered through a cash management account. For larger businesses that have complex financial needs with cash that is going into and leaving a number of different accounts at once, it can be helpful to have advanced web services. These services can sometimes allow privileged employees to quickly move money from one account to another. In other cases, employees may be allowed to wire money to other entities or to clients using only the Internet.
Businesses with a number of different locations and therefore use a number of smaller banks might benefit from a cash management account that offers cash concentration. This is a service that allows clients to consolidate the moneys from a number of different smaller bank accounts in the account of a larger primary bank. A major benefit of this cash management service is that businesses can apply the interest from the primary bank to the money in the accounts of the smaller institutions.
If you are interested in checking account services, you may choose a cash management account that has either account reconcilement or lockbox services. Account reconcilement allows businesses that write out many checks to view the number of checks that are pending and also allows them to see a projected balance. Lockbox services allow businesses that receive many checks from clients to open up a special post office box that is checked periodically by a bank official. Any checks sent to the lockbox are deposited automatically into the proper checking account.
A large part of choosing the best cash management account may simply be a matter of finding a bank that you trust and that you feel comfortable working with. Many individuals and businesses feel safest working with large global financial institutions that they judge to be relatively stable. Smaller, local or regional businesses might prefer to utilize the services of smaller banks or credit unions that help to strengthen a particular community.
