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Cash management refers to a number of services that banks tend to offer clients such as large businesses. While many individuals may use savings or checking accounts and other services provided by banks, cash management services tend to be those designed for clients with more complex financial needs. Some of the most common types of cash management services are account reconcilement, advanced web services, lock box, cash collection, and armored car services.
Account reconcilement is one of the most commonly used cash management services. This is a service that is designed for businesses that write a large number of checks each month. Checks do not always clear right away, meaning that balances are not always easy to determine. In order to gain a higher level of transparency, account reconcilement enables businesses to get full listings of each and every check written in a month, allowing employees to see which checks have cleared, which are pending, and what the projected balance of the account should be after all pending checks have been deposited and cleared.
Many banks offer cash management services that include advanced web services. These first allow employees to create log-ins that are more complex than typical consumer log-ins for greater security. The greater level of security enables employees to send money to other locations, accounts, clients, and entities, as well as manage cash in ways that most individual and small business consumers do not have access to.
Lock boxes are often provided by banks to large clients who are searching for cash management services. This is a service that allows clients that receive a large number of checks in the mail to set up their own box in the post office. A representative from the bank opens the box, removes the checks, and deposits them into a proper account.
Cash collection is a service that banks offer to clients that have accounts with a number of other banks. These clients tend to have locations in a number of geographical locations, including places where a branch of the main bank is not available. This cash management service provides clients with the ability to consolidate the cash from a number of different accounts into one account that is able to collect interest from the primary bank.
Armored car service is one of the cash management services that many large businesses expect. This function allows businesses to have large sums of tangible cash, as well as other valuable assets, transported from location to location with increased security and protection. An armored car normally transfers cash from the bank to the business, and from the business location back to the bank.