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Key focus areas for treasury managers in 2022: How treasury cloud will be essential

What you’ll learn


Discover how treasury managers can leverage the treasury cloud to work effectively on their focus areas: digital transformation, fraud prevention, risk management, and forecast accuracy.


Key focus areas for treasury managers in 2022

The pivotal focus points for treasury managers in 2022 are:
Key focus areas for treasury managers in 2022

       

  1. Speeding up digital transformation:
    According to HSBC’s Corporate Treasury Risk Management Survey for 2021 Treasury Rethinking, 53% of respondents believe digitization would significantly improve their business model over the next three to five years.

    Treasury managers are prioritizing the automation of laborious and repetitive operations, such as the reconciliation process, embracing centralized online tools through integration, and using the treasury cloud to manage multiple treasury activities. 

  2. Investing in cybersecurity and fraud prevention:
    The sixth annual Treasury Fraud & Controls Survey Report from Strategic treasury managers indicated that 87% of respondents believe that the threat level from fraud has increased from the previous year. There is a sizable and rising chance that businesses may be scammed and be at risk of fraud.

    Treasury managers are emphasizing security and fraud prevention more and investing in technologies like ML and AI for fraud detection and prevention, as well as employee security education and training programs to ensure financial data protection. 

  3. Improving cash forecasting accuracy
    An in-depth survey conducted by GTNews revealed that many corporate respondents feel that liquidity management and cash forecasting have the highest potential for improving an organization’s liquidity. 29% believed that improved accuracy in cash forecasting through cloud-based treasury management systems could be the most significant push to improving overall liquidity management.

    Treasury managers are looking to increase their forecasting accuracy with the treasury cloud by up to 400% in the coming years to improve reporting and credibility with C-suites.

However, mid-market treasury managers often cannot focus on these areas due to lean working teams, manual operations, and a lack of technical know-how. 

How can HighRadius treasury cloud help treasury managers focus on the four critical areas?

What are the advantages of the cloud?

Below are some ways HighRadius treasury cloud software can help treasury managers in the aforementioned focus areas:

  1. Enabling automation, flexibility, and scalability: HighRadius’ treasury cloud facilitates automation, flexibility, and scalability in the following ways:
    • Automates data gathering and consolidation in a single repository for treasury managers to access data at any given time from anywhere.
    • Enables flexibility by adopting appropriate models for cash forecasting for relevant cash flow categories to predict complicated categories like A/R and A/P accurately. 
    • Supports scalability in organizations by:
      • Supporting the addition of multiple bank accounts or systems.
      • Allowing processes to be replicated or halted for newly acquired or divested companies.
      • Being able to handle high bank data volume in the system.

    Hence, the HighRadius treasury cloud speeds up the digital transformation allowing treasury managers to allocate more time to high-value duties, including performance and KPI monitoring, reporting, and decision-making by automating treasury functions.

  2. Greater security: HighRadius cloud treasury management system helps with cybersecurity and fraud prevention in the following ways:
    • Auto-reconciles bank statement items based on user-defined tolerances and matching rules to find and resolve exceptions with a manual matching option.
    • Highlights any inconsistencies, unusual money transfers, or suspicious trends.
    • Manages accounts across numerous countries and banks by centralizing the management and monitoring of bank accounts.

    This helps identify cash crunches, avoid losses from high borrowing costs, and also aids in working capital management.

    Watch our product tour on how HighRadius automates bank reconciliation.

  3. Higher accuracy: It helps increase accuracy, boosting confidence amongst treasury managers with recent numbers and data-backed reporting. Below are some ways in which our software enhances accuracy:
    • Enables the addition of many relevant variables to precisely estimate the due date for an unpaid invoice
    • Automates the extraction of all required financial data from spreadsheets, banks, and TMS
    • Automates historical and current data comparison to identify recurring patterns and trends
    • Enables scenario analysis with manual override functionality and variance analysis to understand deviations

Significant changes are coming for treasury in 2022. Treasury managers need to be on the right track to fulfill the needs of tomorrow’s treasury landscape for the momentum of change and impact to continue.

Watch this webinar to learn how treasury managers can improve their skills and reform current processes to be future-ready in the wake of an upcoming recession.

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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.