7 major benefits of a business cash flow management software

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Read this ebook to learn the importance and key benefits of using cash flow management software.

Chapter 1

Major benefit of CM software

Chapter 2

Seven benefits of using a business cash flow management software

Chapter 3

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Chapter 01

Major benefit of CM software

Challenges faced without a cash management software

  • Poor liquidity: Without a cash management software, it is difficult to track available cash. If a company falls short on cash, they may be forced to rely on loans or make late payments to vendors and banks. Late fees for utilities or debts may be incurred as a result. Late payments may damage the company’s credit score, making it more difficult to obtain credit account privileges and loans in the future.
  • High resource costs: Maintaining cash flow involves a variety of operations, including accounting fees, advertising, insurance, interest,
    legal fees, labor costs, rent, repairs, supplies, taxes, phone bills, travel expenses, and utilities. And performing this operation without cash management software requires the use of a large amount of human resources due to the manual activities.
  • Poor decision making: Poor cash management can lead to a lot of problems, including confusion and inaccurate reporting. In other words, poor cash management causes treasury to lose sight of their cash assets. As a result, it may be more difficult to spot business trends and issues. This makes allocating a budget and making sound business decisions much more difficult.

Cash management software is used to track, reconcile and report corporate cash flows. The solution is particularly beneficial for managing cash flows across multiple company branches, including international ones, as well as companies that have complex bank account structures. Firms can keep an eye on the current ratio and the quick liquidity ratio when planning to operate, invest, and finance cash activities. Opening, registering, changing, and closing bank accounts can also be done with cash management software. Moreover, account signatories can be added, changed, and authorized.

Chapter 02

Seven benefits of using a business cash flow management software

The following are the advantages to using a business cash flow management software:

    1. Dashboard for high cash flow visibility:
    The ability to connect to all bank accounts, loans, and even superannuation accounts allows for a quick financial overview. The cash management system keeps track of inflows and outflows and makes data accessible easily.

    2. Expenses categorization:
    Categorizing the expenses helps in keeping the business organized, and helps in budgeting and determining which expenses can be deducted from the taxable income while paying taxes.

    Cash management software allows managers and treasury teams to easily tweak processes and policies as needed. Furthermore, all payment request data is stored in a secure, unified cloud, making it simple for treasury teams to keep accurate records and access them quickly.

    3. Budget tracking and cash positioning:
    The software helps in the forecasting of a company’s cash flows over a set period of time. This could be useful for keeping a budget for a week, month, quarter, or year. The budget is used to determine whether the company has enough cash to continue operating over the specified time period.

    4. Effective decision making:
    A cash flow management statement contains sufficient information about the company’s income and expenses. Treasury can determine the cash balance in the company account by analyzing these statements with a cash management system. Early determination of this cash balance aids in determining whether the organization’s financial situation is stable, excess, or deficit. This allows treasury to make better decisions.

    5. Ease in making payments and reconciling payments:
    Payment reconciliation is a bookkeeping method that compares internal financial records to bank statements to ensure that the accounting is correct. Cash management software assists in automatically matching data on cash transactions provided in daily/weekly/monthly bank statements with those recorded in the expense tracking.

    6.Time savings:
    Cash flow management software is extremely useful for planning and coordination. This software uses RPA and API, allowing treasurers to focus more on strategic and high-priority tasks by gathering real-time data from banks and consolidating it into a single place.

    7. Better inter-company lending:
    Due to a lack of proper record management, analysts may be unable to respond to customers on time. In an environment where manual processes are used, collecting data from various departments and staying on top of ongoing collection activities is difficult. Cash management software helps to automatically capture intercompany activities, track balances, and record interest across all mirrored and notional bank accounts.

Chapter 03


Here are the reasons for businesses to leverage a cash management solution:

  • Cash utilization is improved when the treasury team has a single dashboard view of their cash across all banks, regions, businesses, and currencies.
  • Bank statement processing and reconciliation that is automated saves time, eliminates errors, and allows cash managers to focus on higher-value tasks.
  • Global cash visibility gives treasurers access to critical data and gives them more time to make better investment and funding decisions.
  • In user-defined worksheet templates with transaction-level drill-down capability, treasurers/ treasury managers can check real-time cash positions across bank accounts, companies, pools, and currencies.
  • The treasury department can create cash or intercompany transactions and then explore them using advanced search functionality.
  • It is easier to auto-reconcile transactions using standard and user-defined tagging rules, with rare exceptions reconciled manually or automatically.

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