Interview | The challenges of Cash Management in 2023

What are the challenges for financial departments in 2023, their new expectations, the new profiles in a society that is reinventing itself?

“Cash” has always been the sinews of war. This is all the more true in an intensified competitive context: markets in tension, geopolitical crisis in Ukraine, economic uncertainties, internal political tensions. Under these conditions, the activity of Cash Management has a key role in the sustainability of companies. It guarantees the liquidity necessary for the proper functioning of their activity. This requires real-time cash monitoring (Treasury Management System or TMS), and its analysis (Business Intelligence or BI).

At this stage, it is useful to recall the main pillars of cash management and therefore the missions specific to the business:
1. Ensure the liquidity of the company (or group)
• Monitor cash daily and make the right decisions (balancing, investment, financing)
• Establish reliable cash forecasts to gain visibility and therefore anticipate, negotiate well in advance, and arbitrate on lengths and amounts
2. Minimize the cost of banking intermediation
• Negotiate bank commissions
• Follow and know its movements by bank and determine the issues
3. Manage specific business risks
• Evaluate its risk positions: rate, exchange, counterparty

What are the best tools and the most efficient software to better control your Cash?

The essential triptych is the following:
• An efficient Treasury Management System (TMS) to manage its short, medium and long-term liquidity on the one hand, and financial transactions and the associated risks on the other.
• A well-configured Business Intelligence (BI) to analytically explore data via valuable statements, reports, graphs and other dashboards. Artificial Intelligence (AI) and technologies, whether forward-looking or predictive, will also soon become an ideal complement.
• Efficient Credit Management to control customer outstandings and accelerate cash inflows

What is the role of Prodware?

Through the voice of their treasurers, our clients are in the midst of thinking about the model to use for the development of reliable forecasts.

Whether on the time-consuming aspect or the lack of interoperability between systems, they not only expect high-performance tools, they also have a strong need for support and assistance for the optimized use of these tools and their maintenance.

Business Intelligence, coupled with Artificial Intelligence, are the technologies we deploy.
In addition to the availability and quality of data, it is also necessary to inject fluidity into the deployment of the forecast.

Achievements and forecasts must be able to be combined and articulated easily with an objective: to build a final balance of potentially available cash. The implementation of the company’s financial strategy depends on it.

Because Prodware has a multidisciplinary team (former treasurers and credit managers), the company is able to respond to business issues and thus precisely understand the needs and expectations of customers.

Prodware is also a specialist in the Sage XRT and Sage FRP1000 solutions, two solutions recognized on the market which allow you to control liquidity, cash flow forecasts, and all the functionalities necessary for fluid cash management.

What levers should be activated to improve cash management? What issues?

Just like a puzzle, a crucial subject worries financial departments: the development of cash flow forecasts.

Three levels of forecasts result from this for three different objectives:
• Very short-term forecasts with a 10/15-day horizon that allow immediate decision-making
• The rolling plan (or short-term forecasts), horizon 3 months, which is used to define the implementation of financing or short-term investments
• The annual cash budget (BAT) for 1 year, which determines the needs or cash surpluses over the coming year to negotiate lines of credit or investment with banks

Bio of Thierry Delhommais
With a commercial background, Thierry DELHOMMAIS has been working in IT for many years. After having cut his teeth as a business engineer with business software integrators and publishers (Automotive, Legal professions, etc.), he naturally moved into management and took on the role of Sales Director, then Division Director. He joined PRODWARE in February 2017 as Director of SAGE Activities.

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Interview | The challenges of Cash Management in 2023

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