Investing in a bank account and bank fee management tool brings immediate ROI
In today’s fast-paced and competitive business environment, corporations continually seek ways to optimize their operations and maximize profitability. One area often overlooked is the management of bank accounts and the analysis of bank fees. Corporate bank account management and bank fee analysis software can contribute to the corporation’s overall financial health and efficiency. Here are some compelling reasons why this investment is crucial:
Cost savings
One of the most significant benefits of bank account management and bank fee analysis software is the potential for cost savings. These finance tools can help identify and eliminate unnecessary fees, negotiate better terms with banks, and optimize cash flow. On average, corporations can expect to save 10% of their total annual spend by simply consolidating their bank fee statements into one platform and automatically reconciling their actual charges against a pricing schedule.
By closely monitoring bank fees and account activities, corporations can save substantial amounts of money that would otherwise be lost to hidden or excessive charges. For example, many corporations are unaware of the small, recurring fees accumulated over time. A detailed analysis can reveal these charges, allowing the company to address them and reduce overall expenses. Also, having a central source of information can lead to successful rationalization projects, giving corporations the data needed to reduce accounts or redundant services provided.
Streamlined operations
Managing multiple bank accounts manually can be time-consuming and error-prone. Bank account management software automates many tasks, such as requesting new or closing accounts, gathering documentation and signatures, generating reports, and audit/compliance activities.
This automation saves time and reduces the likelihood of human errors, leading to more accurate financial records and smoother operations. For example, automated document generation and tracking can accelerate account opening or closing, allowing prompt resolution and ensuring financial data is always up to date.
Better financial reporting and compliance
Accurate and timely financial reporting is essential for compliance with regulatory requirements and making informed business decisions. Bank account management software provides comprehensive reporting tools to generate detailed reports on account activities, fees, and audit/compliance. Regulatory filing is a time-consuming process, takes months to gather, and requires collecting data from disparate systems. Consolidating this information and automating the generation of essential reports (for example, FBAR) is a massive improvement to which corporations should strive. Automating the process of FBAR using corporate bank account management software has saved the equivalent of working non-stop for an entire week.
Reports can be customized to meet the corporation’s specific needs and ensure compliance with financial regulations. For instance, detailed reports on bank fees can help a corporation understand its cost structure better and identify areas for improvement. Having accurate financial reports readily available also simplifies the audit process and ensures that the corporation meets all regulatory requirements.
Increased transparency and accountability
Transparency and accountability are critical for maintaining trust with stakeholders, including employees, customers, and financial institutions. Bank account management software provides a clear and detailed view of all bank data, making it easier to track and audit account activities. This increased transparency helps build trust, and ensures that financial practices align with corporate governance standards. For example, detailed entity and signer data can be tracked to help gather the required documentation for KYC (know your customer) processes.
Scalability
As a corporation grows, its bank account and fee management needs become more complex. Scalable bank account management software can handle the increasing volume of accounts and corresponding fees. This scalability ensures that the system can support the corporation’s growth without compromising efficiency or security.
For instance, a growing corporation may open new bank accounts or acquire new entities in its corporate structure. A scalable system can easily accommodate these changes, ensuring the corporation’s bank account management remains efficient and effective.
Focus on value-added projects
In today’s business environment, corporations are looking for a competitive advantage. They are often trying to do more with less resources. By optimizing productivity, automating opening or closing accounts, centralizing documentation or reporting, and reconciling bank fees, bank account management software enables corporations to operate more efficiently and effectively. This frees up resources to spend time on value-added projects, such as applying machine learning to improve cash forecasting accuracy.
Real-life example
A large, global beverage company chose IBAM to help resolve many issues they faced when managing their banking relationships. The old process of managing accounts included sending emails between team members, often rekeying the same data, and significant delays in sending requests to their banks.
This client’s operations team managed the account opening process, which took 60–90 days to complete. The process involved multiple teams, all using disparate systems, and often was maintained using different spreadsheets.
In addition to having data scattered throughout their organization, the client dealt with many documentation issues. They were not sure which signatory needed to sign, documentation was rarely attached to the account before go-live, and only during audits did they realize documentation was missing or outdated.
Lastly, this client was responsible for filing FBAR reports to the US government, related to their US-based signers assigned to foreign bank accounts. This process was entirely manual and often took an entire week’s worth of effort simply to gather the data needed in the reports.
After implementing IBAM, this client could close an unused, superfluous banking application, and use IBAM’s best practice workflows for their account requests. A central platform for account requests, approvals, documentation, and communication has eliminated the need to rekey information, and chase after internal or external parties via emails. It has also drastically improved the document management process. Other major benefits include the integration of IBAM with the client’s TMS (Reval), quick reporting to resolve audit queries, a full audit trail of updates to accounts or signatories, and confidence in the accuracy of the data they are reviewing.
Conclusion
Investing in bank account management and bank fee analysis software is a strategic decision that can yield substantial benefits for corporations. From cost savings and streamlined operations to enhanced security and improved reporting, these systems offer a comprehensive solution for managing bank accounts, signatories, and fees. By applying the capabilities of such finance tools, corporations can achieve greater financial stability, compliance, and use the time saved on value-added projects. In an increasingly complex financial landscape, this investment is not just beneficial but essential for sustainable growth and success.
