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Are Basic Cash Flow forecasting Models still Working?

Learn how the world of Treasury & Working Capital is deeply shifting

by Evelyne Legaux on 16-02-2022


The pandemic crisis has highlighted the criticality of sustainable WCM & elevated Cash to a Board-level topic.


As such, it has prompted the need for better Cash visibility & triggered beneficial side-effects, such as:

>> bringing to the fore the role of functional silos & system limitations behind Cash Flow forecasting inaccuracy,

>> helping stakeholders better understand the business & how their day-to-day job impacts on Cash,

>> fostering cross-functional collaboration towards a common goal,

>> or creating the need for insightful real-time KPIs.


CFOs have made better use of Cash a priority going forward, which requires full visibility over short-term Cash positioning as well as augmented reliability of Cash Flow forecasting.

As a result, Treasury teams are now tasked with rationalizing, simplifying & consolidating their Cash management & forecasting processes in much more efficient ways than ever before.


For such optimization to happen though in a context where economic behaviours have deeply changed, two aspects need to be considered:

  • revisiting the true purpose of Cash Flow forecasting,
  • adoption of new technology with automation, integration, connectivity & scalable capabilities, as a MUST have!


But wait, there is much more to it! Something big & exciting is happening …


Many companies have had to rapidly & deeply transform their business models to respond to the pandemic, such as moving from B2B distribution to direct-to-consumer or embracing e-commerce. And more often than not, Treasury has proven to be a key enabler by providing effective solutions supporting that transformation.


So, what this means is that, instead of just managing the consequences of business decisions, Treasury is now getting involved at the very heart of business Strategy!


Wow!! What an exciting perspective ahead for all Treasury & Working Capital professionals!


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