As a finance office prepares its annual budget, here’s a question that’s often circulating around the purchase of newly proposed services: “Are they needed or just additional costs?” What one may consider as a cost may, in fact, provide a significant source of revenue—while another source of revenue may actually turn out to be a cost.
In the ever-changing world of banking, new technologies can often lead to efficiencies. However, they may end up being listed as new items on your bank analysis statement. While they may appear as costs, benefits such as fraud protection, electronic banking, and merchant services may actually lead to additional sources of revenue like rebates or a higher bank earnings-credit rate (ECR).
When adding a new position to your staff, many consider this position as an expense. Instead, what should be considered is one’s time and how the new position will help you leverage it more effectively. A cost can be converted into a revenue opportunity if one’s focus is used to create strategies and efforts that drive revenue and ease stress, while complementing those performing other office duties.
I often hear public officials voice frustration over fewer resources due to cost cuts, not giving themselves the opportunity to perform other functions that could lead to fresh sources of revenue. If greater focus is trained on generating new sources of revenue, then additional income can lead to more staff, technology investment, and other needed resources for the office.
At three+one®, the liquidity analysis and data services we provide around all cash should not be considered costs but rather an avenue to new revenue by transforming a dormant asset—cash—and making sure all of it is generating interest earnings.
Our proprietary service cashvest® will help you find revenue that is virtually hiding in plain sight. Utilizing this strategy has enabled public entities to add hundreds of thousands to millions of dollars to their bottom lines. What’s more? If cashvest® by three+one® doesn’t help you discover untapped interest revenue on your cash, the service won’t cost you anything!
The takeaway here is that three+one’s® innovative services can be the difference that leads to a positive outcome in your annual budget. That said, these services should be included in your annual budget as a revenue item.
