To thrive in an increasingly volatile global business environment, one that includes business models and new competitors, CFOs should consider a technology solution they may have overlooked in the past: a treasury management solution
According to a new white paper from The Hackett Group, a strategic consulting and enterprise benchmarking service, today’s modern financial leaders need to do a better job of helping management optimize financial resources to grow the company. Hackett says one way they can do that is through a new breed of cloud-based treasury management applications
, which deliver real-time insight into global cash and liquidity that CFOs need to make better decisions, and also provide the strategic levers that are needed to shorten the cash conversion cycle to improve cash flow.
“One of the CFO’s critical roles is helping management optimize the company’s deployment of its financial resources,” according to the new white paper, The CFO as Chief Growth Officer
, which was sponsored by Kyriba. “To deliver on this mandate, CFOs require an unencumbered view of the company’s monetary assets.”
Today’s cloud-based treasury management systems
have evolved rapidly in recent years, extending far beyond basic cash management to include integrated solutions for advanced forecasting, risk management, payments, working capital optimization and more.
According to Hackett
, it’s the triple threat of real-time cash and liquidity visibility, risk management and working capital solutions
that can help CFOs embrace their new mandate and improve business performance. The group says a treasury management solution can help CFOs advance their company’s growth objectives in the following way:
- Optimizing the company’s generation of internal cash flow
- Providing real-time visibility into current and future cash
- Delivering a holistic view of the company’s risk exposure
“Rather than simply acting as financial custodians, CFOs today are party to all major strategic decisions. They bring credibility and value to discussions on how to increase shareholder value not only through cost-cutting, but also by selecting and funding growth opportunities, while protecting the company from risk,” Hackett states.