Four steps to achieving an integrated treasury organization

A recent Aberdeen 2014 Excellence in Financial Management Report confirms that the top two pressures facing organizations today are increased financial risk and an inability to accurately forecast cash flows. With 41% citing increased financial risk and 35% reporting that an inability to accurately forecast cash flows keeps them up at night, it is a good time to take essential steps towards building an integrated treasury organization that can reduce risk and improve cash forecasting.

The Aberdeen survey revealed that best-in-class treasury organizations assess four areas that can enable growth while supporting global treasury operations, which are increasingly subject to risk. Treasuries can:

  • Assess: Forty-eight percent of respondents say that one of the first steps to take is to conduct an internal assessment of all of your financial processes and technological capabilities. Identifying key treasury processes and enabling technology, along with the right resources, creates the foundation for building a cohesive organization.
  • Automate: Automating core business operations and functions is key in creating a unified organization, according to 43% of respondents who selected this area as a priority. Automating daily core duties reduces errors, consolidates data and creates efficiencies that enable real-time intelligence.
  • Collaborate: Forty-one percent of respondents report that treasury needs to promote collaboration within finance as well as with the rest of the organization, in order to create cohesive treasury operations. Integrating treasury with overall finance and organizational operations delivers efficiency and cost-effectiveness.
  • Evaluate: The final assessment that is recommended in the report is to evaluate the data that treasury is receiving and how it is using that data. Thirty-six percent of best-in-class organizations report that integrating and aligning data for multiple finance purposes helps improve forecasting and cash management.

As treasuries assess these four areas, they will need to work with partners that can help them weigh decisions in each of these areas. These partnerships can be found among management consultants, implementation consultants, data providers, or key technology service providers that have partnered with other treasury organizations to assess, build a business case and implement changes for a world-class treasury organizations.

To gain a more comprehensive understanding how Reval can help you build the framework for your integrated treasury organization, click here.