As a business, your finances are at the heart of what you do, no matter what industry or sector. If you are not able to ensure proper cash management, your company can be in risk. But, with how quickly the world is changing, and new technologies are developing, manual management does not cut it any more. Utilising software and automation capabilities is the only way to keep up with your competition and have tight control over your finances.
Automation in cash management
Traditionally, cash management always relied on manual operations, such as physical cash handling, paper-based reconciliation, manual invoicing, and other paper-based processes. These manual methods are not just time-consuming, but also a lot more likely to lead to human errors as well as inefficiencies. While it might sound like a simple inconvenience, it’s much more than that – financial risks and discrepancies. The development of automation solutions for cash management has been completely transforming this area.
The latest software use such technologies as APIs to provide a seamless connectivity between all of your banking accounts and information. As such, it shows all of your important data in a single view, in real-time, completely eliminating the need to enter data manually. These systems can also automate many of the repetitive tasks involved in cash management, including account reconciliation or payment processing. Yes, it truly offers complete control over your company’s finances.
Every benefit of automation
Let’s take a closer look at each way in which automating cash management can help your business:
Higher efficiency
It’s clear that automation means certain manual processes are completed for you or with minimal human intervention. Thanks to this, a cash management software can significantly improve efficiency or, in other words, save you a huge amount of time. Tasks like account reconciliation or payment processes can sometimes take hours when done manually. With automation, it can be completed in minutes. Speeding up these tasks means that you and your team can focus on other tasks, to drive value for the company.
Improved accuracy
Human errors are normal and unavoidable, however, they also lead to some of the most costly mistakes. Automated systems ensure accuracy and consistency, reducing the likelihood of these mistakes to a minimum. Not just that, if mistakes do happen, these smart tools will make finding them much easier, flagging unverified transactions or any inconsistencies before reconciliation. What would otherwise be hours spent searching through a paper document or an Excel sheet, is now a matter of seconds.
Real-time visibility
Having a clear visibility of your financial health is of paramount importance, and modern cash management software provides you with a 360-degree view in real-time. Featuring unified dashboards and user-friendly reports, these systems show you all cash inflows and outflows as they happen. This kind of visibility helps businesses to not only to have better control over their operations, but also make better-informed decisions about things like investments or expense management.
Fraud prevention
Security is absolutely critical in cash management. The best way to ensure it is to have full control and less reliance on manual processes. For instance, automated cash management systems have such features as two-factor authentication for anyone entering the database. As the owner, you are able to view and control who has access to your information at all times. Of course, the systems themselves are highly protected, making use of technologies like data encryption to protect your financial assets.
Cost reduction
After considering all of the above benefits, like faster processes and fewer mistakes, it comes as no surprise that it all adds up to reduced costs. Automating routine tasks decreases the need for manual labour and error correction, while fraud prevention features help businesses avoid unauthorised transactions or breaches of regulatory standards.
Leading cash management solutions
If you are ready to optimise your cash management with automation and software, the below solutions are ones to not miss:
- PrometeoAPI – Consolidating all of your bank accounts into a single view, Prometeo provides real-time access to all of your financial data. This cloud-based API solution offers easy integration to your existing software in just 4 days, as well as a secure and compliant infrastructure with 24/7 monitoring.
- Cobase – Offering sophisticated tools for optimising cash inflows and outflows, Cobase aim to create global cash visibility for their clients. They provide seamless integrations with well-known ERP systems, making use of smart technology and BI (Business Intelligence) tools.
- Kyriba – An advanced cash and liquidity management solution for enterprise-grade organisations, helping them mitigate risks and forecast their cash spendings more effectively. In addition to automation, Kyriba offers features like dynamic reporting, multi-entity analysis, global positioning, and more.
Final word
Technology has been transforming a lot of different business areas, but cash management is by far the most important. It’s the bloodline of your company, responsible for your financial health and profitability. Therefore, ignoring these smart solutions is simply not an option anymore.
