Over 80% of medium-sized businesses fail as a result of cash flow management issues. Effective cash flow management is a complex business operation that demands careful planning, consistent evaluation, and a lot of maintenance. Effective cash management strives to always maintain optimal liquidity levels in the event of unexpected expenses. Liquidity also enables business expansion and innovation. Obtaining cash management processes under control and streamlined is not an easy task, but it is critical. Fortunately, proper risk management and cash management applications can significantly facilitate business cash management processes.
Functions of cash management applications can be summarized as follows:
The following are the challenges that today’s mid-market CFO faces:
Centralized cash management helps mid-markets to maximize returns on invested capital and also prevent the risks that can affect the company. The key benefits of centralized cash management software are as follows:
Investing in cash management automation software eliminates manual workflows and gives mid-market treasurers detailed visibility into their cash flow position. Many treasurers continue to rely on spreadsheets, downloading statements and manually importing recent transactions into the spreadsheets and ERP. Centralized cash management software seamlessly connects with all banks, ERPs, and independent market data sources to process files in all formats, including BAI2, MT940, ISO20022, XLS, and CSV, by:
Advanced reporting enables everyone in the organization to gain more insights from business data in less time and with less effort. Companies can create reports that combine data from various sources, customize them to meet the needs of different users, and automate the reporting process.
To stay competitive and improve business performance, it is critical to gain insights from data. But every organization is different, and each business can benefit from viewing data in ways that reflect how its operations work and how it measures success. Furthermore, different groups and individuals in the organization have different information needs. Without advanced reporting tools, creating customized or individualized views of business data may necessitate a lot of time-consuming, manual work. Businesses frequently must export data from multiple applications, compile the data into spreadsheets, perform specialized calculations manually, and then move the results into yet another tool for presentation. Treasury managers may have to wait days or even weeks for critical reports, which means the information contained in those reports is always out of date.
Automated advanced reporting has the potential to benefit the entire organization. It can both enhance decision-making and improve productivity.
Real-time cash visibility, automated bank statement processing, and automated reconciliation are all features of cash management applications. Automated bank statement processing and prior-day reconciliation saves time, eliminates errors, and frees up cash managers to focus on more important higher-value tasks. Treasury spends a significant amount of time gathering data and compiling reports. This is why treasury professionals seek to upgrade to cash management automation, which can reduce the time required for data aggregation. Other features of a cash management application for mid-markets include:
Cash management applications can significantly eliminate CFOs challenges of reconciliation and integration of highly manual, decentralized data with no visibility from banks and FP&A by:
Automate cash forecasting and cash management with our AI-powered Treasury suite and experience enhanced end-to-end cash flow visibility
Talk to our expertsThe HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.