As businesses continue to expand their global footprint, and new technology changes the way we work, the success of the treasury department is contingent on how well it operates in an increasingly virtual setting.
That’s the latest from PwC’s Global Corporate Treasury Benchmarking Survey 2017, which captures the views of over 220 treasurers and Chief Financial Officers (CFOs) from around the world.
With a full two-thirds of people involved in treasury processes are no longer reporting directly —or even indirectly—to the treasurer, the function is no longer a “department” but rather a process. In fact, many treasurers are handing over more treasury tasks to third-party providers or internal shared services.
In a statement, Sebastian di Paola, Global Corporate Treasury Leader at PwC, said, “Treasury is becoming increasingly virtual and treasurers need to be jacks of all trades by collaborating more with the business, shared services and banks and raising their game in IT security, valuation and financial risk management.”
Top of the Agenda
The solution, says di Paolo, is a strategy that takes a consultative approach, integrates other business processes and is heavy on automation. Treasurers are being asked to step up and become stewards of liquidity and better cash flow management.
A top priority for both CFOs and treasurers is cash flow forecasting, with 42% ranking it as a priority and 80% of these people rank it as high or of critical importance.
Yet, as the report points out, forecasting has been ranked as a priority for the past two decades, and in the 2017 report, over half of respondents cite concerns like accuracy of data, data collection, mapping and proper tooling. Despite huge technological advances, treasury is still a manual, spreadsheet based function. Plus ça change, plus c’est la même chose, it seems.
For treasurers to truly attain better cash flow forecasting and reporting, they must first embrace digitalization, process transformation and predictive analytics. The report points to the importance of attaching KPIs to data accuracy. (Be sure to download the full report here.)
Sutherland has helped many clients contain costs and improve cash management. Finance executives know what has to be done, but internal teams have limited resources for overcoming the obstacles of a lack of centralization and visibility. They struggle with getting real-time information and actionable data.
Optimizing cash management is essential to business success. If you’d like more information on how Sutherland can help you improve cash flow management and significantly reduce your costs, please schedule an appointment today for a deeper conversation with one of our experts.