Using a bank’s cash management service may reduce opportunity cost for a health care organization in a financial sense. Implementing some of the cash management services can be costly and health care organizations that were previously managing certain services themselves will have to pay for it to be driven by someone else. Zero balance accounting within bank’s cash management services can particularly reduce opportunity cost for a health care organization. Using zero balance accounting makes it impossible to know what money is coming into the company from where. It is important for health care organizations to know who they have received funding from and when. If they are unable to access this information it can lead to financial confusion. It can have an even more negative impact if any money received from patients is also deposited into the same bank account as it makes it exceedingly difficult to keep track of who has paid what.
Cash management services are certain services offered primarily to large businesses and clients. It is a term usually used to describe specific services such as cash concentration, automated clearing house facilities and zero balance accounting. It can, however, be used to describe all bank accounts provided to a business of a certain size. There are many cash management services provided by banks to larger business and corporations, including health care organizations. Some of the services generally offered are; armored car services, balance reporting services, positive pay, sweep accounts, wire transfer, controlled disbursement, cash concentration services, advanced web services and lockbox. While these services can be costly more often than not the negatives of using cash management are outweighed by the benefits it can bring to a business or corporation. These benefits can include; cost savings (in the long term), efficiency and accuracy.
Cash management services are certain services offered primarily to large businesses and clients. It is a term usually used to describe specific services such as cash concentration, automated clearing house facilities and zero balance accounting. It can, however, be used to describe all bank accounts provided to a business of a certain size. There are many cash management services provided by banks to larger business and corporations, including health care organizations. Some of the services generally offered are; armored car services, balance reporting services, positive pay, sweep accounts, wire transfer, controlled disbursement, cash concentration services, advanced web services and lockbox. While these services can be costly more often than not the negatives of using cash management are outweighed by the benefits it can bring to a business or corporation. These benefits can include; cost savings (in the long term), efficiency and accuracy.