Making Your Treasury Cash Forecasting Actionable
by Kyriba
Treasury cash forecasting has become an integral part of an organization’s financial operations, as budgeting and forecasting allow organizations to be more forward thinking.
Treasury cash forecasting has become crucial for organizations, particularly in the face of rising interest rates, FX volatility, supply chain challenges, and potential recessions. However, a 2022 IDC survey revealed that 80% of finance leaders lacked confidence in cash forecasts beyond one month, and 95% lacked confidence beyond three months.
Recognizing the limitations of traditional tools like spreadsheets, Tom Gavaghan and Fred Schacknies discussed the value of liquidity planning for long-term cash flow forecasting at KyribaLive 2023. Spreadsheets are user-friendly but error-prone and lack scalability. The cost of inaccurate forecasts includes vulnerabilities, disruptions, and missed opportunities, emphasizing the need for advanced statistical modeling and AI in planning.
Kyriba’s Liquidity Planning module is highlighted as a game-changing solution, offering simplified setup, variance tracking, and liquidity analytics for actionable and accurate cash flow forecasts.