Improve cash flow with mobile
For McKinley Equipment Corp. and McKinley Elevator Corp., a family owned business started in 1948, better cash flow reflects a better customer experience. It started when the company realized a broken deposit process was at odds with its mission.
"McKinley's mission statement is to be the most trusted sales and service distributor in our marketplace," says Kevin Rusin, McKinley's CFO. "You can't be trusted with your customers if you're not depositing their checks on time or if you're asking them to put a stop payment on a check and issue you a new check."
Depositing checks quickly was a challenge. Checks collected across McKinley's operating footprint in California, Arizona, and Nevada were mailed by employees in the field to the corporate office using self-addressed stamped envelopes. Besides mail float, employees often delayed sending checks by several days or even weeks. Sometimes checks were lost.
Additionally, a daily deposit run from the corporate office took 35 minutes — the equivalent of 8% of an employee's work week.
The company provided a mobile deposit app — CEO Mobile® service — to all its sales force, technicians, and installers, accessible through their iPhones and iPads. "Our employees are able to deposit checks from in the field, anywhere in our footprint, on the fly," Rusin said. "It takes about 30 seconds or less, and that check is now in our account instantaneously." Efficient and timely check deposits also have enabled McKinley to operate with a leaner collection staff in its service department.
McKinley also implemented the Desktop Deposit® service to deposit checks received at its office. The accounts receivable team now deposits incoming checks same day, eliminating branch visits.
"The #1 benefit of the CEO Mobile® service is cash flow," Rusin said. "Cash is put into the business every day, 3, 4, or 5 times a day." Instant deposits allow McKinley to start processing orders within minutes instead of days — critical for jobs that require a customer deposit.
"I like to talk about working capital with our employees, because we're a small business, and it matters to us all the time. When I'm speaking to our employees, I like to refer to it as that with our customers, or with our partners: trust is rising.
"It has absolutely changed the way we do business," Rusin said.