The average person might be intimidated by the mere idea of cash flow analysis, but for the intelligent treasurers this is an on-going process. People who want to make sure that they are making the best investment and debt decisions are consistently reviewing all of their financial information as part of an in-depth cash flow analysis. The interesting part comes from deriving ways to improve your current value and improve your net worth.
Crunching numbers starts with gathering all the right information and determining your liquidity. As a treasurer, you also need to determine what level of risk you are most comfortable with to ensure that you are not risking more than is necessary.
Using the right software that allows for real time cash visibility, you can then use the information you have, to reduce borrowing costs on accounts that are short funds, while increasing investment opportunities on accounts that are long funds. In today’s world of real time financial information, you have to use software combined with savvy business practices so you can not only manage multiple accounts at once, but manage them on an international level, while also meeting international reporting standards. If you are trying to accomplish these tasks without the right kind of technology, or you are using new technology with old methods, you could be losing out on lucrative opportunities that you do not want to miss. It may be time to come up with a new strategy you can put into practice with the right software.