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What does a cash flow management solution bring to the CFO’s office?

What you’ll learn


  • How the CFO’s role has evolved.
  • How to leverage digital transformation to optimize the cash management process.
  • What are the advantages of cash management automation.

How has the CFO role evolved over the years?

Traditionally, the CFO has been responsible for maintaining the company’s books and records, financial reporting, and statutory compliance. CFOs nowadays use their familiarity with the company’s financial status to provide guidance in direction and performance.

Understanding how the CFO role has changed and where it is headed provides CFOs a unique opportunity to build new skills while mastering old ones. Because of their considerable engagement in decision making, cash forecasting, and planning, the CFO’s job is evolving towards being a primary technology buyer, making crucial decisions for considering/implementing global treasury solutions and corporate treasury software.

Outdated approaches to accurate cash management

The finance industry has grown a long way operationally in the last two decades, but the use of old treasury management systems continues to hinder treasury to deliver on current expectations and changes. Most companies are struggling to keep up with not only a complex system of accounts receivable and payable but also several banks and lenders.

It’s no surprise that the traditional process of generating cash flow statements takes up a disproportionate amount of time and resources, given the complexity of the process, which includes manually populated spreadsheets, laborious mainframe technology and messaging, disparate schedules, and gaps in interdepartmental interaction.

Using digital business technology to automate cash management processes

Automated cash management is the process of transferring, counting, sorting, and tracking currency in a business setting. Traditional cash management no longer serves the purpose. The automation of cash management is assisted by digitalization. Because there are so many routine transactions going on all the time, digital accurate cash management can help speed up and streamline the process.

Employee errors are reduced to a large extent. As a result, the business can eliminate the risk of human error. The entire cash management process is enhanced by technology, which provides a variety of solutions and smart functionalities.

Digital transformation has introduced improvements that take cash management automation to the next level:

  • APIs for data gathering: APIs (Application Programming Interfaces) allow data to be shared effectively and reliably between multiple systems. This instance involves automating data transfers between an organization’s ERP and its bank or streamlining information flow between internal systems, replacing mass processing with real-time data.
  • Scalable cloud resources: Financial transactions create massive amounts of data in real-time. Identifying whether a transaction falls within operating, investing, or financing activities requires capturing the context around financial transactions and accompanying data. A sustainable cash management application must be able to store and evaluate data sets generated by growing transaction volumes. Cloud-based cash management software systems offer the flexibility needed to effectively handle a company’s huge financial data sets.

The benefits of automated cash management

Errors in cash management can result in erroneous transactions, which can be classified as fraud. Errors in calculating a company’s financial position might result in liquidity problems and even insolvency. Cash management automation minimizes the risk of accounting errors.

Advantages of cash management automation:

  • Reduced manual labor and increased efficiency: Automating the data collection procedure improves the productivity of treasury departments by speeding up cash reporting.
  • Real-time insight: C-suites decision-making abilities are enhanced by the ability to gain insight into cash positions to make timely decisions. One of the best aspects of the cash management system is automated data collecting and processing, which provides real-time information for decision-making. In making financial decisions, understanding a company’s cash position is critical. A business with insufficient cash management is much more likely to overextend itself financially, placing it in a vulnerable situation. Automated cash management keeps track of cash in motion, deposited cash, and the status of capital reserves to ensure that a company is financially healthy.
  • Optimize cash flows and manage with precision: A company’s financial position and liquidity can be better understood, allowing it to manage and distribute funds with greater precision and confidence. With automated reports, businesses can spend more time developing financial strategies and gaining buy-in from key stakeholders.
  • Faster access to cash and data: One of the most important advantages of cash management is transparency. Streamlined and automated cash management processes allow businesses to access their cash more quickly. This visibility can help organizations make better decisions and manage and scale their operations more effectively.

Schedule a demo to learn how to make the best use of cash flow management.

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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.