How do cash flow management tools help treasurers plan for the future confidently?

Here are the main challenges faced without cash management software:

Cash management’s main purpose is maintaining a balance between liquidity and profitability to maximize long-term profit. This is only achievable if the company strives to maximize the utilization of funds in the working capital pool.

5 Ways to improve cash flow management

The following are some of the benefits of using cash flow management tools:

1. Automates time-consuming tasks with APIs and sFTP
   It integrates with banks, ERPs, and third-party market data providers. Moreover, it stores files in any format and categorizes transactions based on banks, accounts, regions, and categories. This eventually helps to increase cash flow visibility.
2. Automates bank reconciliation
   It provides automatic bank reconciliation and user-defined tolerances, matching criteria, and auto-cash transaction creation to reconcile bank statement items automatically. The manual matching option makes it simple to identify and address exceptions.
3. Accurate cash positioning
   Cash management software extracts data automatically from banks and other sources and auto-populates market data, bank transactions, and other data needed to support multi-currency cash positioning.
4. Bank account signatory tracking
   The software helps track and manage accounts and other types of signatories. It also provides these benefits:
   • Manual entry or bulk import
   • Bulk edit and delete ability to update many signatories at once
   • Track approval limits, different signatory groups, and types
   • (Optional) Tracking of personal information (GDPR compliance)
5. Improved decision making
   With accurate cash flow data and positioning, decisions about borrowing, investments, acquisitions, or other critical issues are data-driven and timely. This also gives an edge by being prepared for all scenarios in advance.