Boston, February 5, 2013 – A new report from Aite Group appraises the technologies that corporate treasurers use to forecast cash flow. Based on a June and July 2012 Aite Group study of international corporate executives, completed in collaboration with SunGard, this report also discusses the tools needed to create accurate, effective cash forecasts. It is the second in a two-part series on cash forecasting; part one focuses on cash forecasting strategy, organization, and processes.
Cash forecasting--the process of collecting information on balances and future cash flows and instantly consolidating them across business units--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 requires continuous treasury awareness of the financial health of a company and the needs of that company’s business network. Such visibility strongly depends on the treasurer's ability to forecast cash needs as tied to the company's current monetary availabilities and projected inflows and outflows.
“The ability to run regular and reliable cash forecasts is vital to the survival of companies in the current financial and economic turmoil,” says Enrico Camerinelli, senior analyst with Aite Group and author of this report. “But running automated systems that produce more accurate cash forecasts requires discipline, expertise, and financial prowess that some organizations can ill afford.”
This 26-page Impact Report contains 20 figures and one table. Clients of Aite Group’s Wholesale Banking service can download the report.