Running Treasury on Spreadsheets: A No Go

For small treasury teams that are working with spreadsheets, fast company growth is a challenge. They have to handle day-to-day operations efficiently and securely in order to keep an overview on cash and risk positions. Let´s review why spreadsheets are not an option for expanding companies.

1.    Spreadsheets don’t grow with your business

Treasury teams often try to adapt their existing spreadsheets. But these simple tools have many limitations and cannot help manage a huge number of bank accounts at different banks. And the more currencies are involved, the more challenging it gets. Just think of the complexity of adding a new bank account or updating market data formulas in all necessary cells.

2.    Spreadsheets consume all of your time

As companies inherit a bank portfolio from an acquired company or decide to work with local bank partners as they grow internationally, bank account management and bank statement processing starts consuming more and more of treasury´s time.

Even if your Excel guru is able to add all bank relationships to your spreadsheets, the treasury team has to update account balances on a day-to-day basis. Meaning, bank account information has to be collected from every single bank portal. Doing this manually is not only error-prone, but also takes a long time, keeping the treasury team from value-adding analysis and reporting.

And what would happen if your Excel guru leaves the company …

3.    Spreadsheets cost you money

Many treasurers cannot report daily cash positions, because it takes them a lot longer than a day to collect the data from their banks. When their report is done, it´s outdated already. This does not only limit treasury´s flexibility in short-term investments and funding, but might also lead to wrong business decisions. For example, money transfer from headquarters arrives too late and causes late salary payments in a subsidiary or a liquidity shortfall in a local account causes a high debit interest payment or an unhedged FX position causes a million-dollar loss.

If your treasury has outgrown its spreadsheet world, it´s time for a change in technology. Cloud-based treasury management systems centralize financial data and automate bank connectivity, helping treasuries to increase efficiency and security in day-to-day operations. At the same time, professional treasury technology is highly scalable, enabling alignment of financial operations with a company´s growth plans. Finally, there are no excuses any more for not investing in a solid treasury management system, like Reval.

For more information on how to make the switch from Excel to a treasury management system, read this article.