Proper cash management and forecasting is vital to any organizations for a number of key reasons, including effective liquidity and risk management. Most treasurers understand the importance of timely and accurate cash forecasting -- even if they are not always able to get them -- but do their CFOs? Many senior financial executives accept cash management and forecasting provided by treasury at face value. However, here are five consequences of not being deeply engaged on ensuring accurate cash forecasts on a global basis for CFOs.
Erik Bratt's blog
Erik Bratt, Senior Director of Corporate Marketing
Erik Bratt is a veteran technology marketing executive, helping accelerate brand awareness and drive lead generation capabilities for B2B technology leaders. He is currently the Senior Director of Corporate Marketing at Kyriba, where he oversees branding, content and communications on a global level. Previously, Erik held senior-level positions at Microsoft, Tealium, Ensighten and WebSideStory (now part of Adobe Systems). Earlier in his career, Erik was a journalist for The San Diego Union-Tribune. He graduated from San Diego State University.
While a majority of corporate treasuries still depend on spreadsheets to run their treasury related operations, more and more organizations are adopting treasury management systems (TMS). Implementing a TMS can improve the effectiveness of your treasury function, allowing treasurers to standardize processes, centralize key functions, create a straight-through processing environment, and provide a single source of truth for all financial data.
CFOs who invest in cloud-based treasury management systems can expect to see a 55 percent reduction in idle cash in just one year, while reaping an average of $1.5M in interest benefits over a five-year period, according to updated results from Kyriba’s ongoing business case analyses with dozens of companies in the U.S. and Europe.
The reasons why companies should adopt a treasury management system (TMS) are even more compelling today than they were five years ago.
Organizations considering using Kyriba’s leading cloud treasury and financial management platform expect to gain an average of 464 hours per month in global productivity while achieving $3.9 million in total savings over a five-year period, according to a review of business case data conducted with 49 U.S. companies.