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How do cash flow management tools help treasurers plan for the future confidently?


Discover the benefits of adopting cash flow management technologies to support treasurers in making confident future plans.

Contents

Chapter 01

What is a cash flow management system?

Chapter 02

Challenges faced without cash management software

Chapter 03

What are the objectives of cash management?

Chapter 04

What are the advantages of using cash flow management tools to help treasurers plan for the future confidently?
Chapter 01

What is a cash flow management system?


A cash flow management system is used to track, reconcile, and report a company’s cash flows. The system is especially useful for handling cash flows across several corporate branches, including foreign ones and businesses with complex bank account arrangements. Cash management software can also open, register, change, and close bank accounts. Account signatories can also be added, updated, and authorized.

What is the primary goal of cash flow management system software?

Cash flow management system software is essential for a company’s financial stability to be established and maintained. The primary goal of cash flow management is to guarantee that the input of funds always meets the outflow.

According to a survey sponsored by SAP Universal ID, 80 percent of finance professionals say that cash management, reporting, and forecasting have become more important as modern firms’ complexity and volatility have increased.

Chapter 02

Challenges faced without cash management software


Here are the main challenges faced without cash management software:
Challenges faced without cash management software

Chapter 03

What are the objectives of cash management?


Cash management’s main purpose is maintaining a balance between liquidity and profitability to maximize long-term profit. This is only achievable if the company strives to maximize the utilization of funds in the working capital pool.
What are the objectives of cash management?

5 Ways to improve cash flow management

5 Ways to improve cash flow management

Chapter 04

What are the advantages of using cash flow management tools to help treasurers plan for the future confidently?


The following are some of the benefits of using cash flow management tools:

  1. Automates time-consuming tasks with APIs and sFTP
    It integrates with banks, ERPs, and third-party market data providers. Moreover, it stores files in any format and categorizes transactions based on banks, accounts, regions, and categories. This eventually helps to increase cash flow visibility.
  2. Automates bank reconciliation
    It provides automatic bank reconciliation and user-defined tolerances, matching criteria, and auto-cash transaction creation to reconcile bank statement items automatically. The manual matching option makes it simple to identify and address exceptions.
  3. Accurate cash positioning
    Cash management software extracts data automatically from banks and other sources and auto-populates market data, bank transactions, and other data needed to support multi-currency cash positioning.
  4. Bank account signatory tracking
    The software helps track and manage accounts and other types of signatories. It also provides these benefits:

    • Manual entry or bulk import
    • Bulk edit and delete ability to update many signatories at once
    • Track approval limits, different signatory groups, and types
    • (Optional) Tracking of personal information (GDPR compliance)
  5. Improved decision making
    With accurate cash flow data and positioning, decisions about borrowing, investments, acquisitions, or other critical issues are data-driven and timely. This also gives an edge by being prepared for all scenarios in advance.
Chapter 01

What is a cash flow management system?


A cash flow management system is used to track, reconcile, and report a company’s cash flows. The system is especially useful for handling cash flows across several corporate branches, including foreign ones and businesses with complex bank account arrangements. Cash management software can also open, register, change, and close bank accounts. Account signatories can also be added, updated, and authorized.

What is the primary goal of cash flow management system software?

Cash flow management system software is essential for a company’s financial stability to be established and maintained. The primary goal of cash flow management is to guarantee that the input of funds always meets the outflow.

According to a survey sponsored by SAP Universal ID, 80 percent of finance professionals say that cash management, reporting, and forecasting have become more important as modern firms’ complexity and volatility have increased.

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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.