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. RPA helps in automating repetitive and manual processes with precision and speed. On top of that, Artificial Intelligence minimizes the variance between forecast and actuals by analyzing historical data.
These are the best practices to automate cash flow forecasting:
A 2021 survey of treasurers by EACT cited cash flow forecasting as their topmost priority (63%), followed by the digital transformation of treasury (43%), 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:
To keep up with the times and become strategic advisors in the business, treasurers should embrace corporate treasury software. A suitable cash flow software enables company growth due to the following reasons:
A system with poor integration reduces visibility into cash position and future cash flows. Corporate treasury software solutions help 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 corporate treasury software contributes to a company’s growth:
Treasury cloud 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 treasury cloud, firms can generate reliable reports and make better decisions around liquidity and funding.
Corporate treasury software helps treasury prevent cash crunches as it helps businesses to:
Schedule a demo to learn more about how cash flow automation helps treasury maximize growth.
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.