Cash flow management: dedicated features not always included!
Although there is a popular belief that is still firmly rooted in people’s minds, ERP is not the solution to all corporate business challenges. Some subtle aspects are still beyond the scope of these otherwise well-designed and sophisticated tools. This is particularly true for treasury budgets which, when poorly managed, can have disastrous consequences on the sustainability of organizations.
Because we all agree that in a context of permanent turbulence, it is essential to have a clear vision of your company’s cash flow. Not only to allow you to anticipate possible payment difficulties from your customers and partners, but also to help you develop strategies to manage your company’s own difficulties in paying its bills, or the financial costs related to loans and other outstanding debts.
Continuous monitoring and analysis
Even when the environment seems stable, forecasting the financial availability of any ambitious organization can be very difficult. The fickle and unpredictable behavior of third-party creditors and debtors can suddenly change the picture. This is why it is necessary to report periodically on the availability of funds based on accurate financial data. So that the company can really work with the previously foreseen realistic trends.
Modern CFOs and treasurers are under increasing pressure in this respect. Their primary mission of financial management in the strict sense of the word is largely outdated. They are now expected to drive business performance and position themselves as intelligent data providers. Data that benefits all the company’s operational departments.
A challenge that is only achievable if the company relies on a tool specifically designed to monitor, analyze, and report cash flows in real time. Features that many traditional ERPs can no longer integrate and which, in the end, penalize the company in its quest for speed, agility, operational excellence and, ultimately, growth.
Company specifics
That said, there is no point in making budget forecasts – however accurate they may be – if they are not put into perspective with actual situations that meet specific criteria. Since each organization has its own characteristics, it is essential that these can be understood by a versatile system capable of integrating and recognizing all incoming and outgoing financial information and analyzing it according to these specificities.
For example, companies with seasonal operations have different ways of managing day-to-day operations, revenues, and financial results than companies with much more routine processes. Their expenses in terms of HR, inventory of goods, services, maintenance, etc. differ completely and the budgets allocated to these departments must be confronted with this seasonal reality.
A platform beyond traditional ERP
The ideal solution we recommend companies adopt to achieve operational excellence is a SaaS platform specifically dedicated to Treasury budgets. A solution that can systematically and automatically compare past and present situations to ensure a successful future. A platform that goes far beyond the functionality of traditional, rigid ERP systems, but that can still communicate with the latter to perform complementary tasks in an intelligent way with multi-level forecasting options.