Why Timely Financial Data is a Key to Your Growth Plans
- Keywords:
- liquidity
- technology
Your cash position is more complicated than just payables and receivables. In fact, most Treasurers or CFOs will tell you that the current environment is particularly tough from a liquidity management perspective, which is a key success factor in running your business and keeping your growth plans on track.
Interest rates remain at historic lows, and market volatility — particularly in currencies and commodities -- isn’t helping matters. Under these conditions, you need access to multiple data points in real time to make sound decisions. Without that timely information, you may be challenged in terms of working capital management, and risk missing out on new opportunities or potentially incurring losses.
That’s why a strong treasury management strategy — which includes the appropriate technology — is crucial for getting the financial information you need when you need it.
Beyond payables and receivables.
Because of the combination of low yields and increased volatility, many businesses find that they need to maintain additional cash reserves to manage sudden swings in their operations. And with the instability in currency and commodity markets, it’s important to be able to alter your investment and purchasing decisions as conditions dictate.
Doing this effectively requires access to layers of information, which enables you to you know your exact cash position at any given time. Then you’ll be able to make strategic decisions regarding:
- Optimizing your working capital.
- When you need liquidity for payments.
- Leveraging your excess liquidity through investments or other growth opportunities.
- Intelligent risk management and hedging decisions.
That’s where a strong technology platform comes into play. Technology that gives you real-time visibility to key cash flow information is no longer optional for growing businesses.
For some businesses, this means making sure you are getting the most out of your on-line banking platform, including its reporting capabilities. For other businesses that are larger and more sophisticated, this may mean investing in a treasury workstation.
A treasury workstation, sometimes referred to as a treasury management system, can complement your on-line banking solution and help you to monitor, analyze and forecast your cash flows. These systems are complex and they aren’t designed for every business. you’ll know you’re ready for a more advanced system when you begin to find that you can no longer get the information you need in a timely manner. In larger organizations, this can come into play when you are managing multiple departments or subsidiaries, perhaps across different national or international markets. This type of profile involves complex funding and cash positioning activities or requirements, amplifying the need to invest in a treasury workstation.
When you can’t access accurate information in real time, you increase the risk for working capital challenges and missing out on growth opportunities, whether it’s implementing a new investment strategy or funding an acquisition. Having a strong treasury management strategy in place and having the right tools can put you in a position to make the decisions you need to keep your business moving forward.
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Susan Witteveen
Senior Vice President & Head, Treasury & Payment Solutions
Susan Witteveen is an accomplished executive within the financial industry across North America, having spent over 20 years in a variety of leadership roles. …(..)
View Full Profile >Your cash position is more complicated than just payables and receivables. In fact, most Treasurers or CFOs will tell you that the current environment is particularly tough from a liquidity management perspective, which is a key success factor in running your business and keeping your growth plans on track.
Interest rates remain at historic lows, and market volatility — particularly in currencies and commodities -- isn’t helping matters. Under these conditions, you need access to multiple data points in real time to make sound decisions. Without that timely information, you may be challenged in terms of working capital management, and risk missing out on new opportunities or potentially incurring losses.
That’s why a strong treasury management strategy — which includes the appropriate technology — is crucial for getting the financial information you need when you need it.
Beyond payables and receivables.
Because of the combination of low yields and increased volatility, many businesses find that they need to maintain additional cash reserves to manage sudden swings in their operations. And with the instability in currency and commodity markets, it’s important to be able to alter your investment and purchasing decisions as conditions dictate.
Doing this effectively requires access to layers of information, which enables you to you know your exact cash position at any given time. Then you’ll be able to make strategic decisions regarding:
- Optimizing your working capital.
- When you need liquidity for payments.
- Leveraging your excess liquidity through investments or other growth opportunities.
- Intelligent risk management and hedging decisions.
That’s where a strong technology platform comes into play. Technology that gives you real-time visibility to key cash flow information is no longer optional for growing businesses.
For some businesses, this means making sure you are getting the most out of your on-line banking platform, including its reporting capabilities. For other businesses that are larger and more sophisticated, this may mean investing in a treasury workstation.
A treasury workstation, sometimes referred to as a treasury management system, can complement your on-line banking solution and help you to monitor, analyze and forecast your cash flows. These systems are complex and they aren’t designed for every business. you’ll know you’re ready for a more advanced system when you begin to find that you can no longer get the information you need in a timely manner. In larger organizations, this can come into play when you are managing multiple departments or subsidiaries, perhaps across different national or international markets. This type of profile involves complex funding and cash positioning activities or requirements, amplifying the need to invest in a treasury workstation.
When you can’t access accurate information in real time, you increase the risk for working capital challenges and missing out on growth opportunities, whether it’s implementing a new investment strategy or funding an acquisition. Having a strong treasury management strategy in place and having the right tools can put you in a position to make the decisions you need to keep your business moving forward.
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