The challenges with legacy technology go well beyond any unreasonable expenses involved with continued investments and upkeep in outdated systems, and data accessibility is the single most significant point of legacy failure. The case for modern treasury solutions software begins to emerge at this point.
For treasurers, access to real-time data is crucial for treasurers, especially for companies that rely on decentralized treasury functions. Legacy technology also hinders corporations from achieving a single source of truth.
TMS uses MT940 file formats acquired from the bank to consolidate and normalize bank data on a single platform. These statements get passed through the TMS.
Users spend hours cleaning up your bank statements, developing scripts to normalize columns, and converting currencies to gain a complete view of your cash position.
Manually handling transaction consolidation increases the risk of mistakes and delays, potentially resulting in erroneous data.
Because legacy TMS frequently eliminates control, finding new possibilities and insights into your cash flows is challenging. Customized reporting and forecasting often necessitates either custom projects (a significant and costly undertaking for IT) or exporting data and manually cleansing it in spreadsheets.
Companies usually follow inefficient treasury operations since improving reporting in TMS is time-consuming. Also, maintaining old treasury management technology is more expensive than switching to cloud treasury management.
The more time a company and its team spend reading through thousands of transactions, the less time they have to investigate and assess their cash flow and position. Discovering new investment possibilities, optimizing working capital, improving the cash conversion cycle, and uncovering new cash insights becomes difficult.
A company’s treasury management system should not be a stumbling block to its treasury’s efficiency. It’s better to disrupt this unproductive loop if the system stifles innovation, limits access to correct cash data, and limits the treasury’s development potential.
A well-chosen treasury software system helps a business simplify processes and improve efficiency. However, with so many alternatives available, it’s difficult to pick one that meets all the requirements.
These four guidelines can assist in keeping the selection process on track:
Creating the groundwork for a robust treasury software solution provides the ideal chance to evaluate how things are currently operating. Examine the following things:
This type of analysis makes it possible to improve company processes before implementing a new treasury software solution and getting the most out of it.
Know the requirements at a high level, for example:
Sort the requirements according to their significance. Assign weightages by creating a scorecard. Shortlist the vendors or technologies based on the scores.
There’s a genuine risk of getting carried away with items a firm doesn’t truly need at the price of things they need. Separate the ‘must-haves’ from the ‘good to have’ and return to the original list of needs. Any treasury solutions software that a firm chooses must address the fundamentals. A fancy, expensive treasury technology with a thousand distinct features will be useless to the team if they can’t use it for the most basic tasks.
In addition to budgetary assistance, successfully deploying treasury software solutions requires the complete support of management. Create a strong project team that includes members from your organization’s core financial and business divisions and sponsors, stakeholders, and suppliers. To lead the team and oversee the implementation process, the company must engage an experienced project manager.
Let’s look at how treasury software solutions are better than legacy treasury management systems.
A cloud-based corporate treasury software provides an exceptional opportunity for treasury process reform. Keeping up with treasury trends and the cloud transition is also a critical first step.
Centralization enables a unified picture of an organization’s worldwide operations’ cash flow and risk scenarios. This allows financial managers to make choices based on overall performance rather than individual regional areas.
An accurate projection assists in:
Effective treasury management services may assist firms in reducing risks by implementing an effective risk management strategy. The risk management policy represents the acceptance of critical hazards, and the instruments required to manage them.
A $28.727B multinational food-products corporation faced these challenges:
HighRadius AI-Powered Forecasting provided it with the following results:
Schedule a demo with our experts and learn how switching to corporate treasury software is always beneficial for a company.
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.