The corporate treasurer is responsible for providing adequate money to sustain all firmwide activity while increasing net interest revenue. The division provides financial resources, raises finance and capital to support corporate activities, and manages the risk and liquidity portfolio dynamically. The corporate treasurer aggressively participates in public markets and with the company’s enterprises, investors, and regulators to raise profit.
The corporate treasurer’s primary goals revolve around efficient cash flow forecasting, low-cost funding, and effective risk management. The corporate treasurer is a crucial decision-maker and strategic partner to the corporation and is often in charge of debt management, capital management, and regulatory reporting.
Any organization’s global cash visibility is critical to making timely business decisions. Visibility is hampered since data is dispersed across multiple organizations such as treasury management systems, ERPs, bank portals, sales order systems, etc. Low visibility can also be caused by non-standard processes which result in erroneous forecasts. Corporate treasury can face repercussions due to lack of global cash visibility, such as:
Lack of accuracy lowers the confidence in making decisions. CFOs depend on unreliable data, thus can’t take effective decisions. Accuracy suffers as a result of:
New technology is already applicable and in use in a variety of fields. The main motives for implementing new technology are risk reduction and process automation. Treasury management system (TMS) is a software that aids in the automation of repetitive, and manual treasury processes. A treasury management system is the ideal solution for dedicated treasury support due to the complexity of treasury demands, such as the need for:
Treasurers require the flexibility of spreadsheets to gather data, but they may not always have the time to implement frequent cash balances to assure spreadsheet accuracy. It also holds certain limitations such as:
Technologies such as AI can make a significant impact here by helping with accurate cash forecasting for making confident decisions on borrowing and investments.
The traditional way of forecasting is subjective and dependent on the instincts of treasurers. In the traditional way of forecasting:
The traditional process routine portrays the company treasurer as a number cruncher, which portrays the treasurer as a low-value employee.
KPIs help management measure how corporate treasury is performing and how the department contributes to the company’s bottom line. The treasury department must track these 20 must-have KPIs especially during economic distress when speed and efficiency are key.
The use of emerging technology facilitates the real-time flow of information and accurate cash flow forecasting. With treasurers working from home, the cyber risks have prevailed significantly, so treasurers must take preventive measures to control cyber frauds and data breaches and mitigate them with stringent actions.
Risk management is a critical aspect of corporate treasurer roles and responsibilities because the stakes are extremely high. As a result, having automated cash forecasting software is critical for a corporate treasurer to identify the degrees of impact and mitigate risks in advance. Treasurers can use accurate cash forecasts to:
How can automation and AI help the modern treasurer overcome their challenges?
Corporate treasurers can keep up with the changes in treasury by possessing the following skills:
Technology is playing an ever more pivotal role in the new normal. Learn how you can empower yourself by choosing an automated cash flow forecasting solution that works for you.
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.