Learn the top five cash management solution trends that are gaining popularity in treasury for 2022, and learn how a cash management system helps to keep up with those trends.
Without accurate cash management, a business may become non-solvent due to a lack of accessible cash for regular or unplanned needs. Many SMEs struggle with cash management and healthy cash flow since they rely on sales and timely payments, which are often unpredictable.
Businesses that have poor cash management can fall behind in debt and monthly operational expenses, making it extremely hard to recoup stability.
The majority of cash management systems start with cash receipts and help automate data consolidation of financial data to reconciliation.
Automated cash management software helps businesses eliminate the risk of human errors. Moreover, better-digitized processes allow businesses to improve funding, automate their day-to-day treasury and finance operations, and improve decision-making.
Working with ERPs, existing TMS, and numerous banks, which is the most difficult component of setting up a payment solution, is also covered and can be used to implement new solutions along the process. Having a single tool allows more control over how payments are processed, approved, and released to the banks.
On the other hand, a connection to an ERP system (such as SAP or another) or a TMS should be available to rapidly get all accounts payable data. This requires the use of a different communication system and data format.
A data mapping between the two different data formats is required to ensure that communication between the bank and the organization works properly.
Automation of the reconciliation process is expected to be the goal of 2022, allowing businesses to streamline the process for faster month-end closing.
Because all businesses are vulnerable to financial crime, fraud prevention should be a no-brainer. It’s almost as if it’s insurance for lowering the risk of an actual incident.
For businesses of all sizes, cash management software is becoming more accessible. In nearly any business, a payment factory, liquidity management, or reconciliation can be simply deployed at a reasonable cost. The trend has been moving from one-size-fits-all solutions to a hyper-modular approach. A company can benefit significantly by making the shift towards cash management software.
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