Cash Flow Management
Cash Flow Management Meeting Software
The TMS Treasury Line offers treasuries a comprehensive panel of tools and instruments that are essential from Front Office to Back Office, including the “cash management” module, which is one of the main assets of the software.
In a TMS software context, a cash flow management module makes possible the optimization of all treasury and financial flows thanks to the automatic collection of information into a database via import engines fetching data from any IS application.
By the use of such treasury management software, the holding is in a position to grasp the various liquidity risks on the group level, since the TMS is used by all subsidiaries in the group, and to check both Interest rates and FX rates to positively impact the company’s financial activity.
With Treasury Line, financial forecasts can be done on any period to analyze and minimize risk.
Cash Management in a Globalized Economy
In a globalized economy, an international expansion is a major issue in order to increase business and open new markets. This cross-border visibility may unfortunately go hand in hand with threats and risks due to various factors. An improper treasury management or the use of obsolete tools may be part of these factors and lead to unsufficient liquidities, then the impossibility to meet the company’s financial and accounting obligations, or else to fulfill short medium and/or long term projects.
The cash flow management optimization has thus become one of the corporate treasurers’ priorities, and especially to those which belong to large groups and in an internationalization context. The equation is as follows: how to have enough Cash flow for the proper working of the company and taking account the various constraints (financial, costs, time, profitability, etc.) and simultaneously reducing risks? The answers certainly lies in the use of global and integrated treasury management systems.
The TMS has necessarily to include a Cash management module, which has to meet these three priorities:
- Enabling a rigorous daily book-keeping with incoming and outgoing liquidities and multiple accounts. It must then integrate automation and banking communication macros (information and message receiving and sending)
- Fast flow integration and treatment: information sharing between the subsidiaries and the holding. Having a system with a single database to natively integrate all the group’s flows, and an import/export module able to manage all kinds of formats and files are great advantage.
- The optimization of the flow management and the automated or semi-automated netting to avoid paradoxical or dangerous (a healthy holding not coming to the rescue of a subsidiary with a lack of liquidity because of the ignorance of the situation and not because of a predefined strategy).
Cash Management on Day-To-Day Basis
Facing these cash management challenges, the companies built their strategies around tools able to address complex issues.
In this frame, DataLog Finance has developed and set up the TMS Treasury Line, which gathers in a single database and in a full Web environment all the features of a TMS: financial operation management, cash management, payment factory, bank communication, task management and specific Front, Middle and Back Office workflows, entry accounting, multi-instrument perimeter…
In a ultra secure environment at technical (database, used technologies, encryption…) and functional (strict separation of jobs, tasks and data between of the various profiles, sharp management of the privileges…) levels, Treasury Line presents a centralized and comprehensive vision of the current, future and past Treasury operations, and an automated risk calculation which can be configured in accordance with the needs and specificities of the company. Equipped with powerful features, Treasury Line integrates and respects all the applicable rules and standards (EMIR, IFRS9…).
Integrated management software, Treasury Line merges in the company information system thanks to the Web technology on the one hand (a simple browser is used), and thanks to its import/export module which enables effortlessly the transfers of every data (any type, format…) from the old treasury management system to the new TMS.