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Importance of a treasury software: Learning the basics

What you’ll learn


  • Learn about the basics of treasury software
  • Learn how treasury solutions are improving cash management, cash forecasting, and bank reconciliation operations.

What is the importance of treasury software?

Treasury solution helps monitor a company’s ability to convert assets into cash to meet financial commitments. Treasury management software automates a variety of treasury functions, including cash management, investment & debt management, cash forecasting, and risk management. Moreover, ERP, accounting software, bank accounts, trading platforms, and other systems are all integrated seamlessly with a treasury solution.

Key features required in treasury management software

The following are the features required in treasury software:

key features of treasury management software
  • Reconciliation and payment management: Data on cash transactions given in bank statements should be automatically matched with those entered in the general ledger. Using user-defined rules, assigning ideal bank accounts and payment methods (e.g., ACH, BACS) for various payment transactions must become easier.
  • Cash management: Real-time cash inflow and outflow transactions for operating, investing, and financing operations should be monitored continuously. Automated cash positioning (daily, monthly, and yearly) based on bank statements’ cash flow data is also required to be done frequently.
  • Debt and investment management: A treasury software should provide real-time debt and investment activity tracking across a variety of asset classes, including equities, bonds, and cash equivalents (loans, bank deposits, and marketable securities).
  • Risk management: Liquidity and credit risks should be calculated and monitored using current liquidity ratios, up-to-date credit rates, and aggregated market data on asset volatility. Moreover, treasury software should help in tracking real-time FX rates and commodity prices proactively to minimize risk exposures.
  • Forecasting and analytics: Cash forecasts need to be created accurately using historical and current cash transaction data, and company and consumer payment behavior trends. Moreover, forecasts for all cash flow categories should be fully automated so that the treasury team can focus on value-added tasks.
  • Dashboards and reports: Financial transactions, including cash, debt, investment, hedging, and cash positions should be monitored (by period, currency, region, and bank account).
  • Security and compliance: Companies should be able to quickly authenticate with several factors and control access depending on roles.

Major advantages of using a treasury management software

Here are some benefits provided by treasury management software:

  • Gather real-time information using APIs
  • Create forecasts that help in the identification of liquidity trends
  • Actively manage cash across multiple entities, currencies, and regions
  • Get real-time visibility into cash flows with the help of dashboards
  • Manage various risks such as currency and interest rate volatility
  • Automate bank data reconciliation and perform cash positioning
  • Track scenarios effectively to manage loans and investments
  • Improve signatory tracking and bank administration
  • Manage in-house banking, sweeps, and intercompany transfers
  • Prepare different versions of reports for different stakeholders

Overview on HighRadius treasury solution

HighRadius treasury solutions are a set of AI-powered treasury management applications that automate and improve cash forecasting and cash management for treasury teams across all enterprises.

Features of HighRadius cash forecasting software

The following are some of the features of HighRadius treasury cash forecasting software:

  1. Customized AI models designed for specific needs: Data scientists examine the company’s data to create cash flow forecasting models that are customized to offer high accuracy forecasts across all categories, including A/R and A/P.
  2. Integrated with all systems: The cash forecasting software is designed to integrate effortlessly with any ERP, TMS, accounting solution, or other legacy systems through API or sFTP, allowing treasury to go online in weeks with minimal IT involvement.
  3. Improved control and visibility: Advanced spreadsheet functionality allows users to alter forecasts with real-time business information for better results and accuracy.
  4. Forecasts are seamlessly rolled up from local to global levels: Cash forecasts from various teams, geographies, and units are instantly consolidated at the global level with customized multi-user access.
  5. Variance analysis with detailed insights: Users can identify forecast discrepancies for different time horizons to identify, report, and reduce variance over time.
  6. Continuous forecasting accuracy development: Machine learning uses a feedback model to monitor historical and recent forecasts and adjusts forecasts to build accuracy.

Features of HighRadius cash management software

The following are some of the features of HighRadius treasury cash management software :

  1. Integrates with many data sources via APIs and sFTP: The software processes files in all formats, including XML, BAI2, MT940, ISO20022, XLS, and CSV, and connects easily with all banks, ERPs, and independent market data sources.
  2. 360-degree view of the cash position of the entire organization: Treasury can check real-time cash holdings across bank accounts, corporations, pools, and currencies with transaction-level drill-down capability.
  3. Keeps track of transactions, both expected and actual: Users can make cash or intercompany transactions in Cash Transaction Explorer and then search for them using the advanced search.
  4. Transactions from the prior day are reconciled automatically: Transactions are automatically reconciled based on standard and user-defined tagging rules, with rare deviations reconciled manually or automatically.
  5. Improves maintenance of intercompany and notional pool balances: The software easily captures intercompany transactions, balances, and interest across all mirrored and notional bank accounts.

Schedule a demo to learn more about HighRadius treasury cash management and cash forecasting software.

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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.