Maximize Cash Flow

Today’s rising interest rate environment may make it possible to improve your return on short-term cash.
Investment policies should include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course or become more conservative.

Healthcare systems should examine their current strategies, the adequacy of their information systems and the revenue and cost assumptions under which they are operating.
The uncertainty of the Affordable Care Act, cyber security, value-based payment models, mergers and consolidations, monetization of data, transformation of the care continuum and blockchain solutions are among the issues that successful healthcare systems have addressed. Find out what has worked.

Corporate financial managers must consider the impact of interest rate forecasts, future GDP estimates and potential tax reform on corporate cash strategies.
A number of short-term investment options have become part of the consideration set because of the rising market. They include variable net asset value prime money market funds, separately managed accounts and conservative ultra-short bond funds.

Three key areas of focus emanating from the new Administration and Congress are positive for the economy and growth: cutting taxes, infrastructure investment and less regulation.
As was revealed in the just-released 2017 AFP Risk Survey, one of the top three risk factors having the greatest impact on organizations’ earnings in the next three years was “U.S. political and regulatory uncertainty.”

The corporate treasurer needs to be looking forward, even trying to peer around the corner to see what risks and opportunities exist ahead of them.
Treasurers are helping to fight cyber risk issues, dealing with high-impact regulatory challenges, TWS/ERP integration, and FinTech challenges and opportunities. At the same time, the convergence of finance and technology is increasingly giving treasurers an advantage in attracting the best and brightest professionals as the field becomes more compelling and exciting.

Technological advancements have led to shortened product development times, faster products to market, better distribution systems and streamlined purchasing.
While banks and FinTech providers can at one level be seen as competitors, there is increasing recognition by both sides of the strengths and limitations each possesses. This mutual recognition of their relative strengths and limitations is leading to increased collaboration between the two.

FinTech’s significance is underscored by the exponential growth in venture capital investing in the sector in recent years.
Going forward, FinTech is expected to impact a broad mix of financial service categories, including payments. Many financial service providers are preparing for this new reality by making strategic investments in and partnering with FinTech firms, as well as developing their own solutions.

Distributed ledger technologies record transactions in a decentralized network. The record of each transaction is shared across a network of computers.
While FinTech firms are helping to accelerate the pace of technological advancement within the industry, banks are investing in new technologies to provide better/faster/cheaper and more secure services to their client base.

Along with consistent growth, U.S. insurance firms are facing pressure on their bottom lines due to increased competition, low interest rates and regulatory changes.
By automating claims payments, insurance firms can reduce their reliance on checks and add disbursement options including ACH, prepaid cards and even same-day or real-time mobile solutions. Insurance firms can also improve receivables processing as well by accepting premium payments and contributions to annuities or other investment accounts in a variety of formats.

Long a trusted resource for financial institutions, SWIFT also supports corporate treasurers as they face expanding roles and shrinking resources.
SWIFT provides messaging standards that define a common means of structuring data for a broad range of financial purposes, from cash management and foreign exchange to trade finance. Additionally, SWIFT provides a highly secure proprietary communication platform and products such as SWIFT FileAct, which supports the exchange of bulk files between corporates and banks.

As e-commerce moves towards 10% share of total retail sales, mobile commerce is expected to grow exponentially in the coming years.
Widespread consumer adoption of payment technologies can lead to demand in the commercial space. For these reasons, trends in consumer payment innovation can be early indicators for changes in commercial payments.

The controls that come with the latest commercial payment methods enable CFOs, controllers and program administrators to exercise greater control over payment systems and practices.
The potential benefits associated with strong controls can be significant in terms of cost savings and peace of mind. Conversely, failure to implement appropriate payment controls can subject an organization to unnecessary financial risk.

You can find relief by improving management of invoice processing through payment.
Invoice automation can help you optimize the use of employee resources, significantly decrease the cost of processing invoices, help you capture vendor discounts more reliably and increase scale within your back office.  

Chart provides detailed information on Money Market Fund regulation considerations at a glance.
Intended to preserve the benefits of money market funds while increasing transparency and strengthening investor confidence, new regulations effective in October 2016 will require a re-evaluation of your cash management strategy.

When outside capital is needed, good cash flow and working capital management will make it easier to find and less expensive no matter what the economic cycle.
Companies that make working capital efficiency part of their organization’s culture have the opportunity to generate more of their working capital internally, thereby lowering costs, improving their performance and boosting their competitive position.

If you are one of the growing number of companies doing business in China, recent moves to liberalize its currency can have substantial bottom-line benefits for you.
Although U.S. companies have historically believed that negotiating international agreements in USD insulates them from exposure to currency volatility, it also puts them at a competitive disadvantage compared to companies that transact in local currency.

Changes to the NACHA Operating Rules will allow ACH participants to speed delivery of transactions that are more time sensitive than traditional ACH transactions.
Employers who want more flexibility in timing payroll, insurance carriers committed to fast payout of claims and reimbursements, individuals who need to get money to family members quickly, and billers wanting to offer a same day bill payment option are just a few of the groups looking forward to Same Day ACH.

Around the world, the momentum behind the move to real-time payments (RTP) — or “Immediate Payments,” as they’re often termed — is unstoppable and growing.
The U.S. has been conspicuous in its absence from the list of countries embracing RTP. That’s changing fast, with a surge of activity and initiatives under way to bring payments in the U.S. up to speed with the rest of the world. These moves involve a broad range of players, and an approach specifically geared to the unique needs and requirements of the U.S. market.

In our fast-moving world, payment systems must evolve to keep pace. Quicker payout, more flexibility, better control and improved cash flow are what customers expect today.
With encouragement from the Federal Reserve, the industry is responding to the demand for faster payments. Three leading organizations are already rolling out new payment options.

Many companies have found growth opportunities elusive and are focused on maintaining operational efficiency.
The increasing speed of doing business, the rise of globalization, the continued drive to identify and capture efficiencies, and the need to optimize relationships with suppliers and customers are driving companies to incorporate new technologies into their business processes.

Debt Capital Markets Group third annual CFO survey
This year’s survey looks at what financial leaders are currently thinking about the overall economy, acquisitions, hiring and growth. Their opinions can provide valuable insight as you plan for your company’s future.

Rising interest rates will affect your money market deposits, interest-bearing checking accounts, sweep investments and time deposits.
We are in uncharted territory. Interest rates have been static for longer than at any point in history. There are new reforms and regulations that did not exist before. And the economy is exceptionally volatile, both domestically and globally.

Many companies are interested in realizing the potential bottom-line benefits of payables automation but are unsure of how to introduce it. These 10 steps can help.
Among the steps companies can take toward payables automation are reaching out to their bank's treasury management officer, crafting a strategy, obtaining active buy-in from senior management, designating an executive sponsor and forming a payables auotmation project team with representation from various units.

In navigating through the sluggish growth environment of recent years, U.S. companies have increasingly focused on improving efficiency throughout their organizations.
Many companies have found significant opportunities for efficiency gains by introducing automation into their accounts payable opertaions. In addition to helping with efficiency, automation can offer a number of other benefits, including reduced costs and greater visibility into their pending financial obligations.

Companies are beginning to recognize the importance of having an investment policy that provides clear direction on how investments will be managed and how much risk is acceptable.
A solid investment policy include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course, or become more conservative.

Too many of our nation's businesses have been hit by cybercrime. Yours doesn't have to be one of them. Find out how to fight the latest ploys.
Just as the financial marketplace is driving to faster and more anonymous transactions, fraudsters are increasingly using old-fashioned methods to collect financial information that can enable them to compromise your accounts. Corporations, both large and small, as well as government entities, school districts and individuals, are vulnerable.

Cybercriminals are becoming increasingly malicious and sophisticated, using a combination of tactics to gain your trust. Find out how to thwart them.
Dozens of botnets have helped thieves heist more than $100 million from the accounts of businesses around the world. Hackers stole more than $1 million from the payroll accounts of a Washington State hospital. Cyber thieves operating out of Ukraine are believed to be responsible for massive ebanking losses over the past few years.

Does your company have a well-thought-out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing.  Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective. While every company is different several elements should be part of every policy.

Small adjustments in your working capital program can benefit your organization. Extending your payables without disrupting your supply chain can be beneficial
Find out how one company realized significant gains within 12 months of implementing virtual accounts payable cards. A fast ramp-up generated a significant reduction in working capital while extending days payable outstanding. Topics also include working capital reduction and days payable metrics, tips to enroll suppliers, and a model for supplier negotiations.

Webinar covers cash flow as a measure of performance, capital allocation as a determinant of value creation, how key metrics apply to private and public companies and other issues.
Cash flow metrics can help you better understand your own company or a company that you might want to invest in or acquire.Explore the  importance of cash flow to a business and how using ROI measures is important to understanding companies.These metrics differ from  using earnings for publicly-traded companies and can be used to value investment opportunities.

Multicurrency accounts, multi bank reporting capabilities, multibank transfers and introductions and support are essential for international success.
In order to succeed in the international marketplace, you need control and flexibility in your cash flow. That means clear visibility into your accounts as well as cash management and liquidity structures that maximize access to funds and liquidity solutions in different local and regional markets and in multiple currencies.

Since interest rates have declined, the interest rate swaps’ value is negative or a liability and must be considered as a cost in any refinancing or restructuring.
In the face of moderate economic growth in the United States and overseas, short and long term interest rates remain at historically low levels.  A cancellable interest rate strategy can be used as a hedge against a specific debt facility or as a part of a larger strategy to manage duration of a debt portfolio.

Even in today’s low rate environment, it is possible align your company’s short-term cash strategy with the objectives of your investment policy.
It is important to stay apprised of market trends and regulatory changes. Those external factors, as well as your own internal objectives should drive how you manage your company’s short-term cash now and in the future. Re-evaluate the balances you maintain in non-interest-bearing accounts and determine how this current allocation aligns with your investment goals.

Precise cash flow forecasting is not easy, but studies have shown that companies that succeed can optimize their cash flow and significantly improve decision making and best practices.
The rewards of accurate cash flow forecasting may have never been greater than they are today. But many companies may find that effective, short-term predictive ability remains elusive. Even in the face of these challenges, it’s possible to significantly improve the precision of your forecasts without incurring prohibitive costs.