How does automated treasury management software help fuel your company’s growth?

What you’ll learn


  • Discover the several benefits of automation within treasury.
  • Learn the parameters for choosing the best-fit treasury software.

How is automation technology being embraced by treasurers globally?

The pandemic has exacerbated the need to embrace treasury automation in companies all over the world. A survey by Mckinsey stated that 88% of finance executives have increased their implementations of automation and AI since the outbreak. Additionally, the ACT (The Association of Corporate Treasurers) conducted a survey in 2021 that found that around 23% of treasurers increasingly invested in automating treasury functions, and 47% have begun investing in automation in 2021 alone. Automation has become more of a necessity than a desire as it gives treasury teams bandwidth to focus on making proactive liquidity decisions.

How can automating treasury processes drive business growth?

Cash is king, and failure to anticipate cash crunches leads to detrimental business impacts such as overborrowing or overspending. The use of spreadsheets and cash flow statements for forecasting limits forecast accuracy and visibility into cash flows. However, automating treasury processes provides granular visibility, proper reconciliation, and real-time insights, ensuring error-free cash management and improving liquidity decisions.

Automating treasury processes drives business growth in the following ways:

1. Better cash visibility

Treasurers can gain continuous and granular cash visibility through a single cash management software. They no longer need to estimate their cash positions based on limited or outdated information. Accurate and automated data help treasurers to get a clear picture of the company’s cash position.

2. Effective and timely decision making

With accurate data, CFOs can make confident and timely data-driven decisions based on reliable cash forecasts and reports.

3. Business cost reduction

McKinsey’s survey stated that companies automating 50-70% of their tasks noticed 20-35% annual cost efficiencies and ROI in triple-digit percentages.

With automated treasury software, fees charged by banks for cross-border payments and payments across multiple vendors are eliminated. The money saved can be used for business expansion, debt payments, M&A, etc.

4. Improved risk management

Since automation handles routine tasks efficiently, CFOs can exercise better control over risks. Better cash flow analysis also helps the key decision-makers to identify the problematic areas and mitigate potential risks.

Real automated treasury management software success stories

A billion-dollar construction firm dealt with these challenges within cash forecasting:

  • They used spreadsheets for cash forecasts which was a tedious process as they spent around 20 hours weekly on cash forecasting.
  • The data gathering was completely manual. The A/R data was updated weekly on their ERP, and the bank data had to be extracted from the website.
  • A/P forecasts were low on visibility. Moreover, forecasts could not be performed on a daily, weekly, or monthly basis.
  • Long-term forecasts were performed as needed. Variance analysis could not be performed.
  • The simple cash flow models and manual processes lead to low accuracy, meaning they had to rely heavily on assumptions.
  • Seasonality affected their operations and created high unpredictability, but it was not being taken into account in cash forecasting.
  • Their line of credit was high, and the reports were sent out in spreadsheets to the CFOs.

With the help of automation and AI-based cash forecasting, they were able to achieve 94% cash forecast accuracy and reap additional benefits such as:

  • Increased visibility into all the cash flows
  • Improved confidence in decision making
  • Increased accuracy up to 95% for both A/R and A/P forecast
  • Ability to perform long and short-term forecasts with more accuracy
  • End-to-end automation across all the key processes such as data gathering
  • Ability to perform variance analysis and identify the variance drivers with drill-down functions
  • Reduced the line of credit and automated reporting to the CFOs

Choosing the best treasury management solution for your business

When choosing the best treasury management software, it is essential to gauge the solution by its ability to address a variety of challenges in treasury. Some of those challenges are:

  • The lack of a holistic solution for cash forecasting: Most companies are unable to have proper visibility into their cash flows, which leads to poor and untimely decisions.
  • Manual data gathering and integration: Most of the bandwidth of treasury is consumed on manual and error-prone tasks, which could be spent on tasks such as decision making on debts, expansions, investments, etc. Moreover, treasury teams need to manually integrate data from multiple ERPs, treasury management systems, FP&A systems, etc.
  • Lack of flexibility and scalability across systems: As businesses scale up, the volume of transactions increases, so systems need to be continuously tweaked with the latest data. The use of age-old systems is troublesome in adding more features/ functions due to manual upgrades.

An ideal automation solution is efficient enough to curb these challenges through the following ways:

  • Holistic solution: The solution is able to deal with multiple processes such as cash forecasting, cash management, etc. This provides a single source of truth for execs to make business decisions.
  • Automated data gathering and seamless integration: Automation handles all the manual and repetitive tasks efficiently and accurately. Thus the bandwidth of treasury is freed up, and they can focus on value-added activities.
    Moreover, data can be integrated automatically from multiple data sources like ERPs, bank portals, FP&A systems, TMS, and other financial systems.
  • Flexible and scalable: The processes and data are easily updated, replicated, or halted whenever a new company is acquired, or a new bank is added. Additionally, upgrades are also automatic.

HighRadius AI-powered Treasury Management Software Applications allow treasury professionals to take complete control of treasury functions and help support the company in meeting its business goals. If you’d like to learn more and speak to a solution expert, click here.

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The 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.