Driving new efficiencies in treasury.

• Author: Asker, Erlend
• Position: Treasury

Receiving the most up-to-date information on liquidity and risk is vital for treasurers, particularly in the face of current economic challenges. When reliable and accessible financial data is missing or tough to understand, the pain is readily apparent.

A key element of ensuring dependable access to accurate financial data is treasury technology that can promote automation and workflow. By deploying technology that spans treasury and receivables management and payments processing, corporations can access more accurate information providing a holistic view of liquidity and risk. This can lead to better-informed investment decisions and improved access to free cash flow. Workflow technology can also help foster connectivity throughout an organization and a corporation's ecosystem of suppliers, buyers, banks and other trading partners.

Automating processes to stretch resources still tops the lists of many companies and technology plays a fundamental role in helping corporations attain efficiency. By delivering enabling technology, treasurers can centralize and aggregate information, optimize processes such as payment flows and perform detailed risk management analysis.

Small- to medium-sized businesses in particular can realize significant efficiencies through automation, enabling them to eliminate highly manual processes and error-prone spreadsheets. Visibility of cash and timely management of liquidity based on reliable data will help them grow faster while effectively managing their risk.

Technology is more accessible than ever. Many best-of-breed vendors are offering solutions in a variety of deployment options, aside from traditional in-house installations. Deploying treasury, payments or receivables management technology in a hosted or application service provider (ASP) environment is a viable choice for many corporations. It offers a quick implementation timeframe and affords companies all the benefits of an in-house solution at a fraction of the cost.

For a treasury platform to be a true strategic solution, it must support companies as they evolve through significant events, such as mergers and acquisitions or corporate restructuring. Systems that offer flexibility and ease of interfacing are preferable to a one-size-fits-all approach.

A common error is to extend an existing enterprise resource planning solution to meet the treasury system needs. While an ERP solution may suit accounting needs, it's unlikely to support the...