Whenever a business idea is conceived, one of the main short-term goals is to gain more consumers. That is how a business grows- by garnering more consumers, stakeholders, customers, and employees.<\/p>\r\n\r\n\r\n\r\n
When a strong growth strategy is charted, finances are always considered. And so, the applicability of cash flow statements and multiple bank accounts takes place.<\/p>\r\n\r\n\r\n\r\n
A business depends heavily on cash flow<\/a> and working capital. No matter how much your company is valued at, if your working capital is not enabling you to make purchases and\u00a0payments\u00a0on time, your business is not doing as well as you thought it is; and sooner or later your business is likely to run out of cash.<\/p>\r\n\r\n\r\n\r\n To maintain a healthy cash flow<\/a> that fuels your working capital steadily, business owners tend to diversify their expenses. This diversification is based on departments, types of purchases, types of expenses, and other factors as deemed fit by the management.<\/p>\r\n\r\n\r\n\r\n Sometimes, to create different finance funnels for different kinds of expenses, companies tend to operate on multiple bank accounts. Some businesses are also spread across the country with multiple branches. Such businesses tend to have different bank accounts for each branch.<\/p>\r\n\r\n\r\n\r\n While it may seem like a good idea initially, there are multiple issues associated with a business having multiple bank accounts. Let’s understand in depth why having multiple bank accounts for your business does more harm than good.<\/p>\r\n\r\n\r\n\r\n The financial security of your business is compromised upon having multiple bank accounts because you have decentralized control over extra spending.<\/p>\r\n\r\n\r\n\r\n If a business has a separate bank account for individual branches, chances are that the branch’s finance team may end up overspending which will only be brought to light during regular audits. Such a decentralized nature of spending can be harmful to your business’s financial health.<\/p>\r\n\r\n\r\n\r\n Without a centralized viewpoint of business finances, it is impossible to get full information about payables and receivables. This can further impact the decisions regarding upcoming business expenses that are to be made keeping in mind the available working capital.<\/p>\r\n\r\n\r\n\r\n Low visibility in the financial chain is a deadly side effect of having multiple bank accounts. To manage all, you need to understand the advantages of a cash flow statement and learn the applicability of a cash flow statement.<\/p>\r\n\r\n\r\n\r\n Multiple bank accounts mean multiple approvals. It is a time-consuming process for everyone involved. If a business doesn’t have decentralized spending liberty, it can act as a barrier to taking instant decisions regarding purchases.<\/p>\r\n\r\n\r\n\r\n Regular Bookkeeping is an essential part of maintaining a healthy financial strategy. When businesses have multiple bank accounts, it can get cumbersome to reconcile the AR and AP of all accounts and tally them to get the final amount.<\/p>\r\n\r\n\r\n\r\n Getting a cash flow statement for all bank accounts can take days. It is also subject to manual mistakes, which can then lengthen the entire process of redoing the work.<\/p>\r\n\r\n\r\n\r\n To provide an easy solution for for all the above-mentioned hassles,there are many FinTech platforms available in the market that offer a one-stop solution for all your business finance issues.<\/p>\r\n\r\n\r\n\r\n These digital platforms are automated to track the AR and AP, simplify spend management, and incorporate digital upgrades to legacy methods of corporate expenses.EnKash\u00a0is one such platform that provides a digital expense platform for all your business expenses.<\/p>\r\n\r\n\r\n\r\n Not just you will get the advantages of cash flow statement, EnKash has also essentially resolved the issue of multiple bank accounts with its powerful products –\u00a0corporate cards.<\/a>\u00a0It is loaded with lucrative rewards and benefits like fuel surcharge on credit cards, cashback on early payments, and more.<\/p>\r\n\r\n\r\n\r\n With EnKash corporate cards, you can route all your expenses through these cards. Each branch can be given a separate card that gives them the liberty of spending without worrying about approvals. These business expense cards are issued by the head financial team so that it is easy to maintain compliance and keep track of spending throughout multiple bank accounts.<\/p>\r\n\r\n\r\n\r\n The EnKash cards are linked to your Accounts ERP system so that you can track the expenses in real-time and monitor where your money goes. You can also further decentralize the spending ability by providing each department with a card of its own.<\/p>\r\n\r\n\r\n\r\n See the team’s inspiration behind India\u2019s best B2B payment<\/a> solutions.<\/p>\r\n\r\n\r\n\r\n<\/span>Why A Business Must Not Have Multiple Bank Accounts?<\/span><\/h2>\r\n\r\n\r\n\r\n
Less Secure<\/h3>\r\n\r\n\r\n\r\n
Low Visibility<\/h3>\r\n\r\n\r\n\r\n
Time Consuming<\/h3>\r\n\r\n\r\n\r\n
Reconciliation Woes<\/h3>\r\n\r\n\r\n\r\n
<\/span>What’s the smart solution to track business expenses and investments?<\/span><\/h2>\r\n\r\n\r\n\r\n
<\/span>Benefits of EnKash Cash Flow Application and Corporate Cards<\/span><\/h2>\r\n\r\n\r\n\r\n
For example:<\/strong><\/h3>\r\n\r\n\r\n\r\n
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EnKash also offers:<\/strong><\/h3>\r\n\r\n\r\n\r\n
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