Implementing an appropriate technology to empower treasury can be a game-changer. Learn how embracing automation is the first step toward providing treasurers with real-time cash visibility.
Only 33% of companies are able to enhance their cash flow visibility. Real-time cash flow visibility is critical for sustaining steady corporate operations. Businesses should modify their business continuity plan to recognize and adapt to any vulnerabilities in times of crisis. Unfortunately, most companies do not have 360-degree visibility into their cash flows due to process limitations.
Many companies find it challenging to get strategic cash flow insights. This might be due to:
Cash visibility issues might result in higher financial risks, such as:
Cash management tackles a wide range of issues. Whether treasurers aim to reduce external borrowing or maximize return on investments, either way, the first step is to understand how much cash is available. So, treasurers need a real-time cash forecasting system to assist them in estimating future flows. This helps to keep the suitable individuals informed and accountable.
Gaining complete cash visibility gets more complex when an organization’s structure becomes more sophisticated and dispersed. The following are the most prevalent issues that arise due to low cash visibility:
Continuous end-to-end visibility into the financial and operational performance is critical for decision-making. Real-time visibility reveals the procedures that underpin such decisions. For example, financial analysts and HR departments can see precisely where problems are occurring instead of analyzing historical data. This allows them to intervene and implement performance improvements.
End-to-end visibility delivers financial insights that assist companies in:
Cloud-based business models outperform manual solutions (spreadsheets) in today’s finance world. During rapid market change, cloud-based technology helps firms become future-proof with real-time cash forecasting. It improves cash flow management and helps prevent impending risks.
Cloud-based or real-time cash flow forecasting system helps businesses to:
Cloud solutions are safe and accessible at any time and from any location. Even when team members work remotely, business owners and managers can easily collaborate and continue business operations smoothly. This facilitates better organizational planning and allows organizations to pivot more quickly.
Businesses often face a complicated chain of dependent uncertain events and consequences. Proactively estimating the effect of scenarios helps discover course correction options and make objective decisions.
With a system for real-time cash flow forecasting, companies can identify various scenarios and their impact on liquidity. This enhances better dealing with unforeseen events.
A real-time customized cash flow dashboard is one of the most sophisticated tools for treasurers today. Financial operations can use interactive reporting dashboards to get real-time visibility into systems, processes, and business health.
Dashboards help treasurers to:
Treasurers can easily access dashboards through the cloud systems without asking the IT staff or other teams to provide them with dashboards. Data in dashboards get displayed in various ways, including:
The data is also shared among teams, departments, or the entire company by:
Financial analytics provides a wealth of corporate knowledge and enterprise performance. Finance analytics are critical for helping businesses foresee and plan for the future. And they also entail sifting through masses of data to find trends and make predictions.
Finance analytics can track:
Financial analytics provides information that helps to improve a company’s profitability, cash flow, income statements, and business operations. Hence, it helps corporate finance teams make better decisions and increase the company’s value.
Real-time data aggregation provides these three factors that increase visibility:
Treasury departments require a centralized view of their worldwide cash situation to make informed financial decisions. Accurate and dependable cash forecasting, timely reporting, and effective working capital utilization will benefit from 360-degree, comprehensive cash visibility.
With a cash forecasting system, companies can:
A $37B global wholesale distributor with operations across Americas, EMEA and APAC faced these challenges:
By using the HighRadius cash flow forecasting system, it achieved the following results:
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.