Companies shy away from treasury technology - report
13 July 2006 | 4918 views | 0
The majority of companies still rely on manual and spreadsheet-based processes for treasury and cash management, according to research conducted by The Aberdeen Group and sponsored by Trema.
The report shows that technology adoption for treasury management has been slow to take hold, with the majority of the 160 companies surveyed reporting that they lack integrated processes for managing cash.
Facing myriad technology choices and tight budgets, companies often 'opt out,' and end up lagging in adoption of treasury and cash management technologies, resulting in almost 50% of processes remaining manual and spreadsheet-based, says Trema.
But despite this almost 60% of respondents said improving the accuracy of cash flow forecasting was their number one risk management goal, and Aberdeen predicts a sharp uptake in the implementation of treasury and cash management technology in the next two years.
Around 42% of companies are already seeking ways to simplify treasury and cash management processes, with one-third of those surveyed hoping to centralise treasury operations.
Respondents cited three key areas that are important for optimising the treasury - centralised reporting, accurate forecasting and strong decision making on working capital/liquidity.
Commenting on the research, Jeffery Struzenski, executive vice president, Trema, says: "This survey clearly shows that as companies grow and go global, working capital cycles become longer and harder to manage, requiring a strong treasury system that evolves with the organisation."