Focus on Cash Visibility is Intensifying - Kyriba Corporation

Share Article - Corporate treasury professionals are responding to increased demand for improved reporting processes and information provision by increasing their cash visibility levels. However there is still room for improvement as the uncertain economic climate has highlighted the need for near-total visibility.

Analysis from Citi found that 57 per cent of treasurers are currently reaching visibility levels of at least 95 per cent on a daily basis, compared with 42 per cent of treasurers in 2010. These statistics undoubtedly illustrate a greater emphasis on cash visibility that all treasurers need to be responding to.

Of course, there are numerous factors that form obstacles to improving cash visibility, including issues such as operating in several different markets and countries, the size of the company and the industry it works in. Variable challenges can also add to difficulties in establishing or improving visibility. For example, a business could be growing fast or may be finding it difficult to secure credit. Its capital requirements could be affected by regulatory factors or the most senior executives may need to be involved with the visibility process. Although all of these factors can become obstacles, there are several steps corporate treasurers can take to ensure they achieve the best possible level of cash visibility through their treasury management system.

Technology has played a major part in enabling firms to increase visibility within their treasury departments through a greater use of analytics and automization. These developments in treasury management systems are undeniably useful in overcoming challenges to delivering high visibility levels. There are, however, also elements that corporate treasury professionals themselves need to deliver to maximize the potential benefits of SaaS and cloud-based solutions.

Demonstrating control and leadership is vital when facing scrutiny from external agencies or,
indeed, internal partners. Treasury departments need strong leaders to ensure that the need for best practice in visibility is always instilled. Strong decision making and leadership through the process of installing visibility policies - such as transparent account opening and closing procedures, standardized cash flow forecasting and using analytics that can be verified - is essential.

Alongside leadership comes the importance of business partner engagement. Treasury professionals need to be able to demonstrate a high level of engagement with their business partners as this will help them to stay aware of their plans for the future. It is not enough to be aware of a company’s objectives, as treasurers need to bear in mind the external and internal factors that could change the nature of the role they are fulfilling and further increase the need for visibility – such as expanding overseas to more volatile markets.

Finding ways to perform analytics on the huge volumes of information generated in the form of a company’s liability class and asset data, is a challenge for any treasurer. Presenting this information in a user-friendly fashion that is wholly relevant to the company’s needs is an even greater hurdle to overcome. Treasury management system software can help with these challenges.

It’s clear that although visibility is by no means a new concept, it is an increasingly relevant one in today’s economic climate. Ensuring the transparency of the movement of cash into, out of and within a company is a small but fundamental part of an effective overall treasury process. New analytical tools and cloud-based software are helping corporate treasurers to establish successful end-to-end processes. However, the treasurer’s role, in terms of setting the best-practice bar high and leading companies to become the best they can be with regards to transparency, is not to be underestimated.

About Kyriba Corporation
Kyriba, the global leader in treasury automation offers a best-in-class, cloud-based solution that delivers optimized decision-making, minimized risks, enhanced control and compliance and increased operational productivity. Organizations use the award-winning, online solution to automate and better control all their daily liquidity management activities. Kyriba’s on-demand model enables clients to minimize or eliminate the use of spreadsheets and bank portals. The solution meets stringent Sarbanes-Oxley 404 audit trail, workflow, and control requirements while providing seamless connectivity with a multitude of banks worldwide and straightforward integration with 3rd party financial applications.


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Ellie Ardelean
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