Boston, October 9, 2012 – A new report from Aite Group details the ways in which corporate treasurers most effectively forecast cash. Based on a June and July 2012 Aite Group study of international corporate executives, completed in collaboration with SunGard, this report focuses on cash forecasting strategy, organization, and processes. A second report, to be published later this year, will focus on the technologies and tools used to execute cash forecasts.
Cash forecasting is essentially the process of collecting information on balances and future cash flows and being able to instantly consolidate them across business units. Today, cash forecasting represents one of the most important instruments in a corporate treasurer’s toolbox. The management of liquidity and risk is at the helm of treasury strategies today, and the control of liquidity and the acceptance of risk both require treasurers to maintain a continuous awareness of the financial health of the company and the needs of the company’s business network.
“Corporate treasurers must not minimize the importance of cash forecasting,” says Enrico Camerinelli, senior analyst with Aite Group and author of this report. “A company’s financial health strongly depends on the treasurer’s ability to foresee cash needs as tied to the company’s current monetary availabilities and projected inflows and outflows.”
This 37-page Impact Report contains 40 figures and one table. Clients of Aite Group’s Wholesale Banking service can download the report.