Welcome to Cash Forecasting Maturity Assessment

Evaluate your cash forecasting processes with our digital maturity assessment to Identify improvement areas, adopt best practices, and enhance financial decision-making and liquidity management.

Cash forecasting Maturity Assessment

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Do you use spreadsheets to create cash flow forecasts?

Do you have multiple bank accounts across various locations?

Which method do you use for forecasting cash?

Do you use a software, like Treasury Management System (TMS), to streamline your existing forecasting process?

Does your forecasting software integrate with your ERP, banks, and other financial systems?

What is your average forecast variance?

What is the difference between your current and desired forecast duration?

Which automation solutions do you use to monitor, track or report on your Key Performance Indicators (KPIs)?

Which primary method do you use for forecasting cash for major categories?

How often do you create and analyze cash forecasts?

Please answer the question to move forward

Cash Forecasting Maturity Model - Where do you stand?

Ad-hoc

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Reactive

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Preventive

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Proactive

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More information on your maturity level

Ad Hoc

Your cash forecasting process is evaluated as Ad Hoc

What does that mean?

  • Lack of Structure: The current treasury operations lack formal documentation and standardization.
  • Undefined Roles: Roles and responsibilities are not clearly defined; tasks are assigned based on availability rather than expertise.
  • Disparate Data Systems: Financial data is stored in separate systems with minimal integration, lacking robust data controls.
  • Minimal Automation: Heavy reliance on basic systems or spreadsheets with limited automation.
  • Reactive Approach: Errors and omissions are addressed reactively, with limited cross-departmental coordination and communication.

More information on your maturity level

Reactive

Your cash forecasting process is evaluated as reactive

What does that mean?

You have taken steps to formalize and systemize treasury processes. Most procedures are documented and standardized.

  • Team and Responsibilities: You have a dedicated treasury team with defined roles and responsibilities to some extent.
  • Data Integration: While data integration and centralization exist, financial data quality needs improvement.
  • Software Adoption: Software for managing treasury processes is in place but has limited integration with other systems.
  • Collaboration: Communication with other departments is present but needs refinement to proactively resolve errors and omissions.

More information on your maturity level

Preventive

Your cash forecasting process is evaluated as Preventive

What does that mean?

  • Streamlined Automation: Your cash forecasting is well-defined, streamlined, and automated wherever possible, minimizing manual intervention and errors.
  • Skilled Team: You have a dedicated, skilled, and experienced treasury team proficient in handling advanced forecasting techniques.
  • Centralized Data: Access to centralized data is enhanced by well-established data audits and validation processes, ensuring data integrity and accuracy.
  • Advanced Software Integration: You have implemented advanced treasury management software that automates cash forecasting processes and integrates seamlessly with various systems and data sources.
  • Proactive Collaboration: Strong cross-departmental collaboration enables the proactive identification and resolution of errors and omissions, ensuring efficient and accurate treasury operations.

More information on your maturity level

Proactive

Your cash forecasting process is evaluated as Proactive

What does that mean?

  • Streamlined Automation: Your cash forecasting process is fully streamlined and automated, reducing manual efforts and errors.
  • Skilled Team: You have a dedicated treasury team that is highly skilled and committed to continuous learning and development.
  • Centralized Data: Your data is centralized, integrated, and of high quality, with advanced analytics capabilities for deeper insights.
  • Advanced Software: You utilize advanced treasury management software that automates cash forecasting and integrates seamlessly with various systems and data sources.
  • Proactive Collaboration: Strong cross-departmental collaboration enables proactive identification and resolution of errors and omissions, ensuring smooth operations.

Scale up to the next maturity level

Getting to Reactive

  • Formalize Cash Forecasting: Establish a structured cash forecasting process with documented milestones and clear task responsibilities within the treasury function.
  • Dedicated Team Roles: Develop a dedicated treasury team with clearly defined roles and responsibilities to prevent confusion and duplication of efforts.
  • Data Connectivity: Enhance connectivity and integration of financial data sources to improve accuracy and accessibility, utilizing API connections and data warehouses.
  • Invest in Technology: Implement advanced treasury management systems (TMS) to automate critical and time-consuming tasks, such as cash forecasting and reconciliation.
  • Cross-Department Communication: Introduce robust communication channels and collaboration tools to ensure seamless inter-departmental coordination and proactive error resolution.

Scale up to the next maturity level

Getting to Preventive

  • Task-Level Optimization: Drill down into specific tasks to enhance computations, reviews, follow-ups, reporting, and data handling within the ERP system.
  • Skill Development: Focus on continuous skill enhancement and expertise within the dedicated treasury team.
  • Data Quality: Implement regular data audits and validation processes to improve financial data quality.
  • System Integration: Improve integration with various systems and data sources to boost efficiency and accuracy.
  • Inter-Team Collaboration: Enable seamless collaboration between teams to proactively identify and resolve errors and omissions, enhancing overall process efficiency.

Scale up to the next maturity level

Getting to Proactive

  • Continuous Monitoring: Regularly monitor and enhance treasury processes against industry benchmarks using key performance indicators (KPIs) and best practices.
  • Improvement Culture: Foster a culture of continuous improvement and knowledge sharing within the treasury team, encouraging innovation and skill development.
  • Data Governance: Establish robust data governance practices to ensure data integrity, accuracy, and security, employing advanced data management techniques.
  • AI-Based Automation: Adopt AI-powered treasury management software to automate the entire cash forecasting and liquidity management landscape, leveraging machine learning for predictive accuracy.
  • Cross-Functional Collaboration: Encourage continuous cross-functional collaboration using real-time communication tools, driving business insights and strategic decision-making across departments.

Scale up to the next maturity level

Achieve end-to-end digital transformation

You are at the pinnacle of the cash forecasting maturity funnel, and adopting a proactive approach is essential for accurate and reliable forecasts. While cash forecasting remains a priority, the emphasis is shifting towards comprehensive digital transformation, impacting various business processes.

This is where HighRadius plays a crucial role with its AI-powered treasury and risk management solutions, driving end-to-end digital transformation. As treasury functions evolve with technological advancements, HighRadius offers tailor-made, AI-enhanced solutions at every step, ensuring seamless adaptation and optimal performance throughout the transformation journey.

Streamline Treasury Processes in Weeks, Not Months

Achieve up to 70% Higher Productivity and 50% Less Idle Cash

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