Problems faced by treasurers due to inaccurate cash flow management

The following are the common challenges that treasurers face due to poor cash management:


    • Increased risk from counterfeit:


Counterfeits can lead to severe consequences such as poor brand image, revenue loss, and a variety of health and safety risks for clients. Treasurers must be prepared to deal with potential forgeries. Treasurers can detect counterfeit early in the cash handling process if they have the right technology on their side.


    • High labor costs:


An ineffective cash handling process adds to these touchpoints while also increasing the number of tasks they must complete. Treasurers need to devote more time to counting, sorting, and preparing deposits or floats. They may also have to spend time tracing and correcting accounting errors.


    • Risk of security loss:


When it comes to handling cash, security is also a major concern. The chances of data theft and fraudulent transactions are very high and need to be tackled strategically. Poor cash management can result in ineffective tracking of threats and increase the risks of financial loss.


    • Lack of insight:


Inefficiency and disorganization are frequently associated with poor cash management. This can lead to miscommunication and inaccurate reporting, among other problems. In other words, poor cash management means losing sight of the cash assets. As a result, it may be more difficult to spot business trends and issues. Making sound business decisions becomes much more difficult due to this.

Accurate cash flow management – A key priority for treasurers

Cash and liquidity management is the top priority for treasurers in 2021, according to a PwC survey, and it will still be a priority for them in the upcoming years.

PwC treasury survey

An accurate cash flow management system is required to get real-time and global visibility into the cash flows automatically gathered from the bank accounts across multiple regions and entities. It is also useful to analyze cash positions and make sensible business decisions on funding and investments.

Cash management solutions

Here are some solutions to common cash management problems:


  • Source of funding :


    As the business starts it might discover that the required overhead is too close to the revenue coming in. If this is the case, applying for a funding solution for the company would be a good opportunity.



  • Use an accounting/cash management software :


    There are far too many best cash management software options available for treasury. It is essential to find the right fit for the company and keep an eye on the bookkeeping to ensure it’s up to the mark. Cash management software helps in the allocation of available funds for purchases and other needs, as well as the ability to meet cash flow requirements.



  • Regulate dashboards :


    Dashboards help to visualize cash flows and track trends and fluctuations easily and quickly. Treasurers should prioritize things like demand trends and projected sales, then increase or decrease manufacturing as needed.


Cash management applications in 2022 and beyond

Essential features of cash flow management system

A cash management application helps businesses in the following activities:

  • Accurate and timely cash flow analysis
  • Maximizing the return on cash balances
  • Lowering financing and borrowing costs
  • Developed financial arrangements

How can treasurers benefit from accurate cash flow management?

Having accurate cash management applications is beneficial for treasurers because they can anticipate potential cash gaps and improve their strategic planning.

A cash management applications provide the following benefits:

  • Gives advice on how to manage cash daily.
  • Determines where surplus funds should be handled.
  • Helps firms prevent running out of money.
Schedule a demo to learn more about the best cash management software for treasurers.

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