When Your Company Needs a Cash Flow Automation Tool

Cash flow automation is the simple, logical way for businesses to take control of their cash flow. Manual statements and reports are also an option, but they take a lot of resources and man hours to produce.

If you're considering investing in a cash flow tool and want to justify the reason behind the decision, the following are key justifications:

Your Company Is Growing Fast

Rapid growth is the goal of many businesses, but when massive growth occurs in a short amount of time, it's difficult to keep track of cash going in and out of a business. You'll need to find a way to manage large sets of financial data in a short amount of time.

The best tool for cash flow management will empower you to collect data and visualize it to make smarter, more accurate business decisions.

Your Company's Cash Flow Is Unclear

If you don't know what your cash flow looks like, you're blindly making decisions that will impact the future of your business. Manual cash flow reports don't allow for the granularity businesses need to understand how decisions will affect their future.

Whether using a cash flow or sales forecasting tool, it's important to find a solution that provides:

  • Real-time reports
  • Easy subsidiary consolidation
  • Refined reports for different periods

Automation tools make your cash flow clear and easy to understand.

Your Company's Interest Rates Are Rising

Interest rates are rising worldwide as governments try to tame inflation. Businesses are in a high-interest environment that puts them at a major disadvantage when taking out loans. Learning and managing your cash flow using automation will allow you to use periods of high cash balances to pay off debts and reduce the risk that high interest places on your operations.

Centralized cash dashboards can help you visualize which businesses are spending the most money on loan repayments and are stuck in high interest rate vehicles.

Your Treasury Team Hate Manual Forecasts

Manual forecasts are a long and time-consuming process. Decades ago, accounting teams would fill rooms to try and help create forecasts. Simply collecting all of the debits and credits that a business has is intensive and will take weeks to complete.

Now, using tools allows you to rapidly make forecasts because it reduces the need for employees having to sift through tens of thousands of transactions or more.

All you need to do is find a tool that will:

  • Link your bank accounts to your account
  • Retrieve your cash inflows and outflows
  • Help you reconcile cash flow across multiple subsides

Using spreadsheets is a time-consuming process that will take a treasury team a lot of unnecessary time to complete.

Your Team Hates Manual Forecasts

On top of just the treasury team despising manual forecasts, your other internal departments may also hate manual forecasts. The forecasts can cause some of the work needed to be pushed back and may also lead to errors.

A single transaction error can invalidate an entire report.

Automation helps reduce the risk of human error and will make forecasts more accurate. Creating forecasts requires a lot of data to be crunched and analyzed. However, with the use of automation, you can find solace in knowing that the platform you choose will allow you to adjust perimeters and better understand what results from business decisions may have on your liquidity.

Your CEO Wants Weekly Cash Flow Reports

Weekly cash flow reports make a lot of sense for businesses because they allow you to view your liquidity on a weekly basis. However, if you tackle this process manually, it can take a lot of time and can consume the majority of the week.

Many CEOs now want daily reports, which are very intense to make.

If the CEO of the company demands weekly cash flow reports, using automation tools makes sense. Automation allows these reports to be generated hands-free so that accountants can focus on other areas of their operations.

Utilize A Cash Flow Automation Tool to Get Going

If you're not working with a cash flow automation specialist or using a tool to better monitor your cash flow, you're missing out on valuable information that can help you make smarter decisions.

The right tool will help you save money, offer insights into your cash flow and more.

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