COVID-19 and its impact on corporate treasury
COVID-19 has presented an unprecedented challenge to the corporate treasury. Businesses are focusing on maintaining liquidity but as the global economy continues to worsen, the operational, financial, and liquidity challenges mount for businesses in many sectors. Thus, businesses need to arm up to protect their cash flows.
Successfully managing financial issues requires not just preventive measures, but also clear and constant communication with internal and external stakeholders. The following steps highlight how to manage internal and external stakeholders:
Some of the common problems faced by treasurers are:
A cash management tool provides a 360-degree view of a company’s cash position. As a result, treasurers can view cash balances in real-time, across multiple banks, entities, accounts, currencies, and regions.
Three ways in which treasurers can address their problems with technology
Treasurers’ confidence in making business decisions and ability to foresee potential crises can be improved by real-time cash flow data. Since treasury is in charge of all company’s cash flows, teams must respond quickly and proactively in order to avoid a financial crisis. They can be proactive in the following ways:
How can the treasury team be ready to respond in the event of a crisis?
Treasury teams can use an automated cash forecasting solution in the following ways to respond to a crisis:
A cash flow forecast allows businesses to track expected cash movements over a period of time in the future, and cash forecasting has been a top priority for treasury for more than a decade. However, cash forecasting can take up a significant amount of time for treasurers. Firms must adopt technologies such as automation and Artificial Intelligence to eliminate such issues in the future and improve cash forecasting accuracy.
Advanced technologies to refine cash forecasting
Treasurers should consider the following questions to improve their cash management strategies:
Schedule a demo with HighRadius today to improve cash flow forecasting for effectively managing liquidity when a crisis hits.
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