72% of Treasurers Still Do Cash Flow Forecasts Manually

Many treasurers are attempting to tackle their risk management, liquidity issues and other concerns using lagging processes that can be costly as well as time-consuming.

While 91% of these professionals use some form of cash flow forecasting, 72% manually collect and categorize data to do so, as reported in the “Digitizing B2B Payments Tracker,” a PYMNTS partnership with Deluxe.

Get the report: Digitizing B2B Payments Tracker

Using manual methods creates a vicious cycle, as treasurers risk forecasting with outdated or inaccurate information that can compound their risk management and cash flow concerns.

Gaining Appreciation for New Technologies

Adopting new technologies is especially important when businesses are looking to streamline and modernize processes and systems.

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Although treasury departments have been enthusiastic about emerging technology for several years, the industry has been plagued for some time by a gap between the firms that say they are interested in these innovations and those that can truly develop and use them. That’s why a large share of treasury departments still rely upon human employees to conduct complex processes such as cash flow forecasting.

Still, new technologies aimed at improving payment flexibility, speed and transparency have been trickling into treasury departments for some time, and treasury professionals have gained appreciation over the past few years for emerging technologies that can cut through this cycle, reduce costs and grow working capital, even if implementation has been comparatively slow.

This gradual adoption of new technologies has been bolstered by the growing number of businesses and consumers heading online for services. Many clients now expect swift and seamless online services, and firms are finding that manual processes can no longer keep up.

Integrating Automated Tools

Firms are on the hunt for technologies that can help them meet clients’ new digital standards, but they still value the reliability of legacy payment methods like checks. Leveraging artificial intelligence (AI), application programming interface (API)-connected platforms and other automation tools can accelerate the processes attached to such payments without forcing businesses to upgrade their infrastructures.

Each of these technologies offers unique benefits to support digital innovations. Automated tools can be integrated into treasury departments’ treasury management system (TMS) operations to tackle cash flow forecasting and determine risks, for example, while APIs allow firms to swiftly send and receive funds, client requests and sensitive information from partner institutions.

Departments are also interested in implementing additional payment options alongside checks. Supporting various payment options requires significant shifts in departments’ TMS operations, however, meaning firms will need to examine whether their core infrastructures can handle newer methods and enable them to coexist alongside legacy solutions.

Companies where treasury departments are quick to innovate will be most ready to satisfy existing customers and draw new ones. They’ll also reduce the cost and time required to tackle treasurers’ concerns.