19th Jan 2018

The low-hanging fruit of treasury management

Beating the BIG THREE with an Automated Cash Analytics Tool

Sometimes, it doesn’t take much to achieve great success.

That is why; like a vineyard owner trying to rush his grapes to the winemaker after a successful harvest, you should start by picking the low-hanging fruit. The quick cash and treasury management wins that pave the way for a triumphant future.

With the treasury function increasingly seen as having a unique set of skills to improve the bottom line, treasurers and treasury practitioners are being called upon to add value above and beyond cash management.

For the modern-day treasurer; who wrestles with traditional duties, as well as board-imposed strategic expectations, this means beating the BIG THREE.

What are the BIG THREE?


#1 Real time cash and liquidity reporting#2 Treasury risk management#3 Executing profitable treasury tactics
Monitoring and managing cash positions in real-time to produce daily and intra-day liquidity reports, as well as forecast overviews.Identifying, evaluating and managing interest rates, currencies and commodity risks to minimise losses.Adding value through process efficiency, improved working capital management and interest optimisation.

How an Automated Cash Analytics Tool addresses The BIG THREE:

An Automated Cash Analytics Tool can help treasurers beat the big three by helping them; keep a closer eye on cash and liquidity, minimise risk and take advantage of investment opportunities to make profit.

1. Real time cash and liquidity reporting with an Automated Cash Analytics Tool

Multi-bank cash visibility – Achieving timely cash visibility can take over a treasurer’s role. Building up a picture of the company’s cash position through multiple CSV downloads, numerous spreadsheets and hours of reconciliation is time consuming. And it’s an even bigger task when you’re dealing with multiple banking systems or subsidiaries across the globe.

With multi-bank cash visibility via an Automated Cash Analytics Tool, treasures can gather group-wide cash positions and report on global liquidity requirements in real-time. Enabling quicker, more strategic decision-making.

Coordinate and configure data – Wouldn’t life be easier if everything is organised just how you want it to appear? Analysts spend hours trying to patch together data so you can view the information, just the way you want it. Only to start all over again the following day.

With an Automated Cash Analytics Tool, data can be configured in real-time based on bank provider, currency, country and organisational legal entity. Life’s much easier when you know what’s what and where’s where. Right?

Detection – BIG DATA! We’ve all heard about the big promise that it holds for treasury and finance. Indeed, when it’s available in real-time and in a legible format, we can make decisions quickly.

However, as data sources grow, so does the need for anomaly detection. With finance data overflowing, detecting irregularities is difficult. And when you’re using a spreadsheet treasury model; working from sheet to sheet and tab to tab, it’s merely impossible.

Luckily for treasurers, an Automated Cash Analytics Tool can  benchmark data against standard payments profiles. Which helps users spot anomalies, missed opportunities and areas for improvement. Perhaps there is some truth in this promise after all.

2. Treasury risk management with an Automated Cash Analytics Tool

Minimise Loss – The emphasis on risk management has continued steadily since the start of the financial crisis. A decade on, treasurers have moved on from mere cash visibility reporting and expanded to include a more in-depth look at risk reduction.

Never before has there been greater justification for a firm to minimise losses, than today. With a highly volatile macroeconomic environment and unstable foreign exchange rates, there’s a great emphasis on reporting that can allow you to act on findings  positively & proactively.

By using an Automated Cash Analytics Tool for large exposure reporting, managing inter-company transfers, reducing negative credit interest and minimising foreign exchange risks, treasurers can feel SMUG as they help to minimise losses with minimum effort.

Sweeping – Treasurers looking to optimise interest payments, minimise cost of borrowing through surplus funds or simply improve overall liquidity can do so by concentrating all their cash into one account, where the interest is at its highest.

Without an Automated Cash Analytics Tool, this task requires routine manual input of payments, which is both error-prone and difficult to maintain. With no human intervention required, an Automated Cash Analytics Tool integrates directly with the payments engine to remove the need for manual sweeping tasks.

3. Executing profitable treasury tactics with an Automated Cash Analytics Tool

Analysis – To understand the structure of the finance and treasury function, treasury analysts need to gather real-time information on cash positions by region, currency, bank and legal entity. This usually takes up a large amount of time when reconciling with spreadsheets or even a Treasury Management System (TMS), time better spent analysing data.

Automated Cash Analytics Tools shift the treasury role away from data gathering, towards analysis and strategy execution. Routine tasks such as statement input and reconciliation are automated, allowing you to spend time on jobs that can improve your bottom line.

On-demand – When you’re tasked to produce reports that contain complete, accurate and up-to-date information on current cash positions or future liquidity forecasts, it can be frustrating tackling the many hurdles you face just to meet these requirements.

With an Automated Cash Analytics Tool, it’s easy.  Bespoke, organisational reporting requirements can be configured and delivered on demand, allowing you to produce detailed reports containing the most up-to-date information.

Investment opportunities – We all know the benefits that Sweeping can provide to those looking to keep borrowing costs to a minimum, improve their liquidity position or optimise interest positions. However, this vision is for here and now, and not for the future. To achieve this, forecasting is essential.

With an Automated Cash Analytics Tool, you not only benefit from real time data, but you can also produce forecasts based on regression analysis. Allowing you to take early investment opportunities at preferential rates, make moves to hedge funds and save money.

What next for treasury management?

Once the vineyard owner takes his grapes to the winemaker his job is done for the season. Unfortunately, for you and I, this isn’t the case. Treasury and finance professionals must meet these targets daily. But with an Automated Cash Analytics Tool, the job becomes a lot easier for the modern-day treasurer.