Now more than ever, organizations are looking to optimize their cash liquidity in order to make smart investment decisions and combat inflation. With inflation rates at an all-time high and market volatility concerns arising, treasury and financial professionals are seeking out the best options for managing liquidity in order to protect their organizations’ bottom line. With the power of greater insight and data modeling, treasurers can make informed investment and debt decisions. Here, we’ll explore optimizing liquidity through cash flow forecasting and the nuances of doing so in PeopleSoft.
When organizations work to leverage their investments, debt, and cash liquidity, they set themselves up for better cost savings. Optimization of liquidity allows them to take a proactive approach to their treasury efforts, saving costs in the long run due to the benefits forecasting as to offer which can reduce the need for reactive actions on the part of their treasurers, CEOs and CFOs. Having the proper amount of cash on hand when a foreseen (or unforeseen) expense arises means that there’s no need to scramble to sell assets or go into undesirable debt in order to come up with cash. Proper liquidity management cuts down on panic and serves as insurance against losses and lost investment opportunities.
When liquidity is optimized, treasurers can take advantage of lower costs of borrowing when interest rates are low, avoid borrowing when interest rates are high, and invest in the markets at optimal times. Organizations don’t want to borrow unless required, or if they have too much cash on hand, they face the risk of lost investment gains due to inaction. Managing Liquidity effectively is where Cashflow positioning and forecasting is particularly valuable. In addition, forecasting can allow treasurers to plan for larger, annual inflows and expenses that are known.
How Can You Use Cash Flow Forecasting in PeopleSoft Treasury?
PeopleSoft delivers the Cash Forecasting Manager within the Cash Management Module. This functionality allows users to leverage data from internal financial sources, as well as external sources, to produce liquidity data trends treasures can analyze and take proactive action on.
For those already on PeopleSoft, the key advantage of cashflow forecasting is the fact that most are likely using the Cash Management module but might not be fully utilizing the Cash Forecasting Manager data tool.
Even the most seasoned treasurers can likely be doing more to get the most out of PeopleSoft Cash Management, leveraging the power of proper cashflow forecasting and liquidity management. Interested in learning more about how to properly take advantage of cashflow forecasting? Reach out to our PeopleSoft Treasury experts at [email protected] to set up a time to discuss your organization’s unique needs and how we can help. In the meantime, reach out to [email protected] to request the slides of our recent presentation at the Quest Oracle Community BLUEPRINT 4D conference, “Enhancing Financial Clarity and Liquidity Management with PeopleSoft Cash Management”.
About the Expert:
Mr. Sanson serves as Elire’s PeopleSoft Treasury Practice Lead, leading PeopleSoft Treasury Implementations and Optimizations for Elire’s valued clients. Alvaro has 25+ years of Treasury expertise and is recognized as a Trusted Advisor for Treasury in the Healthcare and Education sectors.
