Read this ebook to learn the importance and key benefits of using cash flow management software.
Cash management software is used to track, reconcile and report corporate
cash flows. The solution is particularly beneficial for managing cash flows
across multiple company branches, including international ones, as well as
companies that have complex bank account structures. Firms can keep an eye
on the current ratio and the quick liquidity ratio when planning to operate,
invest, and finance cash activities. Opening, registering, changing, and closing
bank accounts can also be done with cash management software. Moreover,
account signatories can be added, changed, and authorized.
The following are the advantages to using a business cash flow management software:
2. Expenses categorization:
Categorizing the expenses helps in keeping the business organized, and
helps in budgeting and determining which expenses can be deducted
from the taxable income while paying taxes.
Cash management software allows managers and treasury teams to
easily tweak processes and policies as needed. Furthermore, all payment
request data is stored in a secure, unified cloud, making it simple for
treasury teams to keep accurate records and access them quickly.
3. Budget tracking and cash positioning:
The software helps in the forecasting of a company’s cash flows over a set
period of time. This could be useful for keeping a budget for a week, month,
quarter, or year. The budget is used to determine whether the company
has enough cash to continue operating over the specified time period.
4. Effective decision making:
A cash flow management statement contains sufficient information about
the company’s income and expenses. Treasury can determine the cash
balance in the company account by analyzing these statements with a
cash management system. Early determination of this cash balance aids
in determining whether the organization’s financial situation is stable,
excess, or deficit. This allows treasury to make better decisions.
5. Ease in making payments and reconciling payments:
Payment reconciliation is a bookkeeping method that compares internal
financial records to bank statements to ensure that the accounting is
correct. Cash management software assists in automatically matching
data on cash transactions provided in daily/weekly/monthly bank
statements with those recorded in the expense tracking.
Cash flow management software is extremely useful for planning and
coordination. This software uses RPA and API, allowing treasurers to focus
more on strategic and high-priority tasks by gathering real-time data
from banks and consolidating it into a single place.
7. Better inter-company lending:
Due to a lack of proper record management, analysts may be unable to
respond to customers on time. In an environment where manual
processes are used, collecting data from various departments and staying
on top of ongoing collection activities is difficult. Cash management
software helps to automatically capture intercompany activities, track
balances, and record interest across all mirrored and notional
Here are the reasons for businesses to leverage a cash management solution:
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.