The treasury department is no longer considered a back-office role because it not only controls cash, working capital, risk management, and overall treasury efficiency, but it also acts as an internal strategic advisor to the CFOs through proactive treasury management.
Treasury is responsible for cash management and forecasts, bank reconciliation, loans and borrowings, foreign exchange, and taxes. However, as the world became more globalized, treasury began to focus on recognizing and investing in new sources of income, managing risk, detecting bottlenecks, and developing financial policies and rules.
Currently, treasury requires high visibility over cash flows and quick access to data to get better insights for decision-making as the market is prone to volatility. To keep ahead of the curve, treasurers should create a list of treasury KPIs that helps CFOs measure their performance and plan new financial strategies to fast track goal achievement.
Treasury KPIs are metrics used to track and analyze the performance of treasury. CFOs must establish the appropriate and latest treasury KPIs for liquidity, funding, financial risk management, and overall corporate governance.
KPIs for treasury department is an effective way to objectively monitor treasury activities. By evaluating the various treasury metrics on a regular basis, management can ensure that all team members are working as efficiently as possible, while also highlighting any areas of concern.
Cash flow management applications can be used to track cash flow drivers and track progress toward treasury goals. It gives cash visibility in real-time, assists in monitoring intraday and prior day cash positions, and converts cash balances into base currency using current currency exchange rates. Regularly reviewing KPIs helps proactive financial planning by ensuring end-to-end cash flow visibility.
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.