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Benefits and Best Practices of Liquidity Management

May 8, 2023

In today's time, the definition of being financially agile means having the assets available to act quickly. For many businesses, a lack of visibility into their liquidity can put them at a competitive disadvantage, resulting in lost opportunities, and introduces undue risk. In a recent survey with Forrester, more than 80% of the companies indicated that liquidity management is a priority.

Excellent liquidity management is characterized by full visibility into spend, cash, liabilities, and financial resources, not just the bigger financial picture. To make the right decisions at the right time, finance teams also need to see every transaction and cash flow, every regulation that impacts financial obligations, and every payment to every supplier.

However corporations are still relying on a combination of spreadsheets, emails, and phone calls, as well as manual gathering of information needed from various accounting software and core banking applications, to manage cash and liquidity. Re-engineering systems to achieve a clearer picture of liquidity can be complex and time consuming.

In this increasingly complex marketplace and regulatory environment, corporations need an accurate, timely view of their liquidity, whilst factoring their present and future cash requirements.

Why is this a serious problem?

Lack of real-time cash visibility

Manual excel-based processes, several systems, numerous banks, and large teams across different business units make liquidity management inefficient and prone to error. Especially in times of uncertainty and change, it is crucial for treasury and finance teams to make quick decisions based on reliable liquidity analysis. Immediate insight into liquidity positions and forecasts can speed up decision-making and increase business agility. 40% CFOs cited "unreliable cash visibility and forecasts" as a top treasury problem, as per a survey by Kyriba.

Rising unexpected economic disruptions

2020 and 2021 were years of unique and unpredicted disruptions. The outbreak of the coronavirus, Russia - Ukraine war and the unprecedented measures needed to curb them took the world by storm and left industries in shambles. Amidst unparalleled supply chain disruptions as countries closed borders; corporations saw their sales dwindle to a catastrophically low level and liquidity risk drastically rose.


Sancode technologies can help corporations make more confident cash and liquidity decisions, along with analytical tools to manage more complex global cash structures and optimize liquidity across the enterprise.

With a cloud-based liquidity management solution, Sancode technologies can assist corporations to consolidate their siloed infrastructures, capture transactions from any internal or external source and create a single, global view of their balances across all currencies and accounts. This solution can provide real-time, accurate, and consolidated information to manage liquidity across banks, accounts, entities, and regions.

RPA can break down internal silos, access the data that allows for better anticipation of liquidity events, improve banking relationships, organizational visibility, and inherently improve financial performance.

With always having an accurate and up-to-date cash position to begin with, corporations can use AI-based cash forecasting capabilities to build and analyze global cash forecasts by day, week, month or year by leveraging multiple sources of data and simulating what-if scenarios.