Navigating cash and treasury: 5. Modernize the core of financial management

August 24, 2020

Do your systems lack the ability to achieve complete cash visibility?

Today, the most successful financial services organizations are more focused on what’s necessary to safeguard business continuity and solvency. Much of this begins with greater visibility and reliability of key data to help drive critical business decisions—especially during times of crisis.

Download the eBook: Cash and treasury: Best practices for navigating uncertain times

Our current blog series is reviewing cash and treasury best practices during uncertain times. In the previous post, we reviewed best practices to establish intraday liquidity monitoring capabilities. This week, we wrap up the blog series with a discuss around the modernization of financial management.

Consideration #5: Modernize the core of financial management

Many of the best practices mentioned in this blog series require the use of specific digital tools. Legacy ERP systems might lack the needed abilities to achieve complete cash visibility. Or, it could be too difficult or cumbersome to implement obscure customizations or clunky add-ons to older ERP systems.

A modern financial ERP system, however, should come with the necessary functionality already built in—or at least be part of a digital ecosystem that’s designed for seamless integration with other financial tools. A modern ERP system should also provide dynamic scalability that allows businesses to adjust to changes in processing volume as demands fluctuate.

Modern ERP systems should be intuitive and easy-to-use, with access to cloud services that deliver a highly resilient, fault tolerant, scalable, and secure environment that serves as the foundation for an organization’s entire enterprise ecosystem. Considerations should include:

  • ERP as a data warehouse—Modern ERP systems go beyond simple financial capabilities, such as account entity, accounting unit, account, and project. Modern ERP systems include customizable dimensions, such as supplier, channel, market segment, and more. Modern ERP systems can even provide data warehousing with near-real-time profitability and cash flow across a redesigned dimensional string.

  • A role-based user experience—Modernizing an organization’s financial management process requires tools that operate anytime, anywhere, on any device that fosters collaboration across corporate groups. A modern ERP system should also provide dashboards, reports, data visualization, and proactive analytics capabilities that work across systems to deliver information automatically based on users’ specific roles and priorities.

A modern financial ERP system can transform the very core of an organization’s internal financial management. It can help optimize cost efficiency and drive enterprise growth by accelerating areas such as digital transformation, robotic process automation (RPA), data visualization, and advanced analytics.

Looking back at our blogs series, we see that achieving full cash visibility takes time and effort, but the rewards can be significant. Armed with a complete, accurate, and up-to-date picture of the current cash position and future flows, treasurers can expect to see enhancements in operations.

You can review the previous blog posts here:

Blog 1 of Series: Automate bank connectivity
Blog 2 of Series: Generate cash positioning
Blog 3 of Series: Enhance cash and liquidity forecasting
Blog 4 of Series: Establish intraday liquidity monitoring capabilities
Blog 5 of Series (this one): Modernize the core of financial management

If you would like to discover more about cash and treasury management, we invite you to download this eBook on how to navigate uncertain times and elevate cash and treasury.

Filed Under
  • Financials
  • Banking and Financial Services
  • CloudSuite Corporate
  • Liquidity Management (Realiti)
  • Infor Treasury Management
  • Worldwide
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