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How does cash flow automation create an opportunity for growth within your treasury organization?

What you’ll learn


  • Learn the difference between manual and automated cash forecasting.
  • Learn the key benefits of cash forecasting automation.
  • Learn how automated cash flow software helps in better budget allocation and detecting cash shortages proactively.

What does it mean to automate your cash flows?

 Over the last few years, significant technical advancements in treasury have taken place to keep up with increasing liquidity concerns. One of the advancements that are gaining traction is automation in cash forecasting. Cash forecasting automation helps treasury eliminate time-consuming manual processes, minimize errors and provide a single source of truth for easy and continuous data access.

Manual cash forecasting vs. automated cash forecasting

Treasury has been prioritizing cash flow forecasting for more than a decade. It’s also an area where the treasury department spends a lot of time. To stay on top of cash flow fluctuations, organizations must use automation and Artificial Intelligence to improve cash forecasting accuracy. Robot Processing Automation helps in automating repetitive and manual processes with precision and speed. On top of that, Artificial Intelligence minimizes the variance between forecast and actuals t by analyzing historical data.

How does automating your cash flows aid growth in your company?

A 2021 survey of treasurers by EACT cited cash flow forecasting as their topmost priority (63%), followed by the digital transformation of treasury (43%) and managing risks for FX, interest rates, and Libor (33%).

Markets around the world continue to be volatile, and accounting for sudden uncertainties has become the norm. Today, the priorities for CFOs and treasurers have shifted towards:

  • Transparency, control & visibility
  • Data integrity
  • Real-time access to data
  • Audit / compliance
  • Adoption of new technologies to enhance and optimize the overall operations

To keep up with the times and become strategic advisors in the business, treasurers should embrace automated cash flow software. A suitable cash flow software enables company growth due to the following reasons:

Automates time-intensive and error-prone processes

A system with poor integration reduces visibility into cash position and future cash flows. Automated cash flow software helps in streamlining the treasury process by reducing the administrative burden and helping to focus on strategic tasks such as liquidity and risk management. This helps boost team efficiency and productivity.

A recent survey by Mckinsey addresses how technological transformations contribute to a company’s growth:

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Benefits of cash forecasting automation:

  • High granular visibility: Centralized/bottom-up cash forecasting and automated data collection results in timely data access and granular visibility.
  • Accurate modeling: Accurate modeling for complex cash flow categories such as A/R and A/P results in less unpredictability.
  • Ease in identifying variance drivers: Improved accuracy and frequency of variance analysis helps treasurers identify the sources of variance, and make adjustments to build more accurate cash forecasts.
  • Automated reporting: Data-driven reports can be sent out to the CFOs in a timely manner. This helps CFOs make confident decisions on borrowing, investments, M&A, and repatriation.

Better data will lead to better budget allocation

A cash flow forecast provides accurate insights into a company’s future financial health and helps companies budget wisely.

Timely and accurate data are critical for confident financial planning and budgeting. However, obtaining data can be challenging. Firms frequently rely on antiquated systems that fail to offer reliable information. With the help of automated cash forecasting, firms can generate reliable reports and make better decisions around liquidity and funding.

Benefits of accurate budgeting:

  • Instills confidence in investors by staying prepared for unforeseen occurrences that could affect revenues and budgets.
  • Establishes better understanding and control over different internal and external factors that can have both short and long-term consequences.
  • Notifies corporate leaders proactively of any unexpected event that could have a negative influence on their business performance.

Enables treasury teams to detect liquidity shortages in advance

Cash flow software helps treasury prevent cash crunches due to the following reasons:

  • Recognize and prepare for liquidity crisis: Cash forecasting provides the company the foresight to take remedial action. Additionally, companies will be able to predict future cash gaps and minimize missing payments if they have a precise cash forecast.
  • Allocate surplus cash: Cash forecasting automation can assist in identifying prospective surpluses and allows cash managers to properly allocate excess funds. This helps companies to invest or use the extra cash to achieve a competitive advantage.
  • Run scenario analysis: Scenario planning aids companies in capturing ‘what-if’ possibilities and developing business strategies to avoid losses.
  • Prevent FX risks: It helps manage and limit the risk associated with foreign exchange. By using cash forecasting software, the treasury department can anticipate cash demands and reduce FX losses.
  • Minimize debts: It allows the treasury and finance teams to safely redeploy any current or future available liquidity to reduce outstanding debts or interest.

Schedule a demo to learn more about how cash flow automation helps treasury maximize growth.

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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.