Cash Management Banking Tools to Maximize Your Earnings

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Cash Management - Banking Tools to Maximize
Your Earnings
Ohio Association of Public Treasurers, October 9,
2008
Susie Todaro, Vice President, Sr. Treasury
Manager, KeyBank
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Overview

• A measure of both an organizations efficiency
  and its short-term financial health. The working
  capital ratio is calculated as
• Positive working capital means that the
  organization is able to pay off its short-term
  liabilities. Negative working capital means that
  an organization is currently unable to meet its
  short-term liabilities with its current assets
  (cash, accounts receivable and inventory).

Source Investopedia.com
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Overview

• Could your working capital be working more
  productively?
• Optimize Receivables
• Maximize Liquidity
• Control the Payments Process

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Optimize Receivables

• Lockbox Services for Larger Volumes
• Turns tax payments or utility payments into
  productive, available cash faster.
• Checks are cleared electronically as images.
• Reduces need for costly courier services.
• Increases speed and accuracy of deposits.
• Provides enhanced information to support cash
  flow forecasting.
• Provides extensive remittance and deposit
  information, while minimizing employee processing
  requirements.

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Optimize Receivables

• Remote Deposit Services for Moderate to Smaller
  Volumes
• Remote deposit technology helps expedite check
  collections.
• Remote deposit solutions allow organization to
  make check deposits electronically, without
  having to transport paper checks to bank
  locations.
• Remote deposit capture also effectively extends
  deposit window hours, maximizing funds
  availability.
• Remote deposit technology also allows
  organizations to collect payments and make
  deposits from anywhere.

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Optimize Receivables

• Begin to eliminate paper from your processing
  workflows.
• In 2006, over two-thirds of all non-cash payments
  were made via electronic methods.
• Accepting deposits electronically via the
  Automated Clearing House (ACH) network can
  provide significantly faster funds availability
  than paper checks.
• ACH also helps reduce risk by accelerating the
  receipt of return item information.
• ACH also helps to simplify statement
  reconciliation and improve cash forecasting.
• Have a return items process in place to receive
  the cash faster.

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Maximize Liquidity

• Its all about cash.
• Invest and maintain liquidity with sweep
  accounts.
• Consider longer-term investment strategies.
• Work with a professional advisor.
• Safeguard your accounts with positive pay and
  other fraud prevention solutions.

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Fraud A Problem That Wont Go Away

• Fraud targets any individual or organization, and
  particularly those that demonstrate weaknesses.
• AFP survey states that 72 of organizations have
  been victims of attempted or actual payment
  fraud.
• The Association of Certified Fraud Examiners
  (ACFE) calculates annual losses due to fraud at
  652 billion, or approximately five percent of
  the nations GNP.
• Hidden costs of fraud include operational
  exposure, opportunity cost, reputation risk and
  employee satisfaction.

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Control the Payments Process

• Is there a better way to pay.
• Optimize funding of payment accounts
• Controlled Disbursements accounts (CDAs).
• When coupled with Positive Pay, CDAs help provide
  both increased control over funding and a higher
  level of protection against fraud.
• Eliminate Paper with electronic payment methods.
• Incorporate Purchase Card Solutions.

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Questions and Comments Welcome

• Thank you for your
• participation today!

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Contact

• Susie Todaro
• Vice President
• KeyBank Global Treasury Management
• 216.689.4411
• Susan_M_Todaro_at_KeyBank.com