Why have money sitting idly by when it can be earning a return?
Running a company takes a lot of time and effort. Most companies spend the bulk of their time and resources in developing, marketing and operating their “core” business. Some of these tasks include: creating brand awareness, establishing an effective sales force, reducing product costs, implementing standard operating procedures, etc.
In order to improve their bottom line, most companies focus on two things: increasing revenues (by selling more products or services, entering new markets or raising prices) and decreasing expenses (by reducing product costs or reducing overhead).
There is another area that also directly impacts every company’s bottom line that is often overlooked or mismanaged. That area is cash management.
Good cash management dictates that money is available when your company needs it—whether for payroll, future acquisitions, contingent liabilities or future commitments. At times, debt covenants or regulations exist to ensure that proper cash reserves are on hand.
However, where you place the cash reserves can directly impact your bottom line. Why have money sitting idly by when it can be earning a return?
The IOP can be structured specifically to each individual company’s needs so that the necessary cash will be available as needed—while generating a return in the interim.