Perhaps the most obvious and most important consequence is the inability to forecast accurately. It's important to understand the negative strategic impacts of not having proper cash management processes in place. Accurate visibility also reduces a company's risk exposure, while unlocking the potential for organizational growth. It enables a company to invest cash strategically, while minimizing debt and expenses.
Predict what cash the company will have in the futureĬash visibility is the essence of any organization.Utilize cash management structures effectively.Corporate treasurers are responsible for cash management, including cash flows, so it's imperative that they know what is in all corporate bank accounts at any given time. Good financial decisions are based on cash visibility. PwC's 2019 Global Treasury Benchmarking Survey What is cash visibility?Ĭash visibility is crucial in effective treasury management, liquidity management, and providing a clear picture of an organization's working capital. "More than a quarter of global cash is not visible to corporate treasury on a daily basis".
#DEFINE VISIBILITY FULL#
Working with multiple banks across different markets, and encountering complex banking structures across diverse geographical footprints increases the difficulty in gaining full cash visibility.
Often treasurers lack the necessary level of cash visibility required to give them a clear picture of their organization's full cash situation. But the value of cash held by enterprise organizations can only be determined if the treasurer knows what cash is available, where its held and how it's expected to flow in the future. In the world of payments, cash is still king.
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