Two-thirds of treasurers say they aren’t happy with their cash visibility – now what?

By Kyriba December 17, 2014

Last week, I talked about the importance of cash visibility and its role as the bedrock of a solid corporate treasury management operation. So, on a recent webinar that we ran (you can find it here, if you missed it), I thought it’d be interesting to see where treasurers stand with level of cash visibility both in terms of what it is currently, and also what they’d like it to be. We asked how much visibility people have into their cash – 0-24%, 25-49%, 50-74%, 75-99% and 100% – as well as how much visibility they’d like to have.

The answers were mixed. On the positive side, almost 60 percent said that they have visibility into at least three quarters of their daily cash. However, on the flipside, more than two-thirds (67.2 percent) said that they want more visibility into their cash. In fact more than half of all respondents expressed a desire to have full, 100 percent visibility of their daily cash balance. Even among those respondents that already have very high level of cash visibility (75-99 percent), more than two-thirds (67.1 percent) strive for 100 percent visibility.

Even though 100 percent daily cash visibility isn’t necessarily critical for all businesses (if knowing your exact daily position in Bhutanese ngultrum or Kyrgyzstani som is make-or-break for your company, you probably have bigger issues), these responses demonstrate the increasing pressure both within the treasury function and the CFO for deep visibility into the organization’s cash.

So how can optimal visibility be achieved? The key to achieving this is enjoying dependable, unbroken access to all the relevant cash flows in the organization’s financial ecosystem. At its heart, the components that need to be implemented to deliver a complete and integrated cash visibility solution are:

  • Bank account management
  • Bank connectivity
  • Cash positioning and reporting
  • Cash forecasting

With all four of these elements working in concert, optimizing your visibility becomes less based on crossing fingers and hoping for the best, and more a dependable and repeatable process. Not only will this improve the accuracy of reporting and visibility (with the tangible business benefits that accompany it) but it will also enable the treasury team to spend less time on reporting and more time focusing on strategic business initiatives.

To help treasurers navigate this journey, we’ve developed a white paper, Achieving Maximum Cash Visibility – A Best Practice Guide. It offers a concise and straightforward approach to ensure that a company’s operational processes, combined with its internal and external connectivity, can ease the burden that ensuring visibility places on the treasury team.

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