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

What you’ll learn

  • Identify the difference between the outdated and digital approaches in cash management.
  • Discover what the cloud-based cash flow management system offers for the CFO’s office.

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 use their familiarity with the company’s financial status to guide 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Outdated approach vs. digital approach in cash management

approach in cash management

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.

What benefits does a cash flow management system offer the CFO’s office?

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:
benefits of cash flow management

  • Automated and error-free process: Automating the data collection procedure improves the productivity of treasury departments by providing more bandwidth to speed up cash forecasting and reporting.
  • Streamlined payments from multiple sources: Cash management automation streamlines all of your payments from various sources and provides users with dashboards. CFOs are able to check real-time cash positions with granular drill-down capability to understand cash position, use the surplus cash for better returns, and control risks before negatively impacting the business.
  • 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.
  • Make better investment/debt planning : Investment/ debt planning becomes easier with auto-populate settlement instructions. Automated cash management systems use best-fit criteria in investment and debt planning based on credit line availability and predetermined targets to make more efficient decisions.
  • 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.

How can HighRadius help you to manage cash flows?

HighRadius’ AI-based Cash Management Cloud is designed to assist treasury teams from organizations of all sizes and industries. It enables treasuries to end-to-end automation of their cash management processes in the following ways:

  • Handle exceptions by manually resolving transactions:

    Easily detect and address exceptions with a manual matching option while automatically reconciling bank statement items based on user-defined tolerances, matching criteria, and auto-cash transaction creation.

  •  Enhance cash visibility by customizable cash position templates:

    HighRadius customizable cash position templates offer a transparent view of the bank and cash balances at the currency, entity, and regional levels and allow CFOs to fund, clear, and make cash transactions with a single click.

  • Track and manage accounts signatories:

    CFOs are able to keep an eye on all accounts and other signatories with a single repository and manage those by bulk edit and deleting the ability to update many signatories at once. Additionally, they are able to track approval limits, different signatory groups, and types.

  • Maximize time and cost savings:

    Cash management software allows treasurers to focus more on strategic and high-priority activities by integrating real-time bank data and combining it into a single location. It is also cost-effective as it’s completely scalable and flexible to meet the latest requirements of a company. Moreover, there is no IT intervention required.

Get in touch with our solution expert today to learn in detail about the features of HighRadius’ cash management solution for the CFO’s office.

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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.