Mission critical: Getting on top of your cashflow

Mission critical: Getting on top of your cashflow


Mission critical: Getting on top of your cashflow

Keeping on top of business cashflow has been listed as the top priority for financial directors today. Cash rich companies want to stay that way whereas other businesses want visibility of their short term cashflow and at the same time be able to forecast long term scenarios.

There is no denying that CFO’s are expecting decline in revenue and to maintain profitability, the focus will be to manage cash flow better. According to a recent pwc report CFO’s are likely to cut spending in most areas of the business.  However, investment in digital transformation, improving customer experience and better management of the finance operations and cyber security remain a priority as these initiatives are critical for businesses to sustain and thrive in this uncertain environment.

 What does tighter cash flow management mean for Finance Teams?

Finance teams are often left to use assumptions, wide adjustments and excel sheets to manage cash flow which is the lifeline of the business.  What are the challenges finance team facing around cash flow?

Key challenges

  • Cashflow is uncertain during these difficult economic times. Businesses big or small are affected and finance teams need a tighter hold on payments, receipts, and lending limits.
  • Existing planning systems are too geared to cyclical reporting, focused on absolute accuracy and the widest net of available data.
  • Supplier and customer situations are changing every day and keeping on top of their financial health and adjusting cash flow forecasts accordingly is demanding
  • More frequent demands for management reporting from directors/executive community to review the live cash flow status and enable quick/responsive decision making

Far too many financial planning tools are still in the dark ages and still require a considerable amount of manual data entry and time spent at a desk. When you’re dealing with a fast-changing situation like the COVID-19 pandemic, you need to reassess at a moment’s notice.

How can Finance teams be better prepared for cash flow management?

Finance teams who have a 360-degree view of the company finances are in a better place to analyze, report and respond to changing circumstances. Ability to gather and analyse data is key for financial planning and forecasting. With latest data to hand and tools to analyse this data Finance team members can perform rapid scenario analysis and support better decision making.

What does a resilient finance team look like?

  • Capability to have a complete view of the finances of the business at a group level and at individual business units’ level.
  • Ability for all in the finance team to access all the information remotely
  • The ability to forecast cash flow accurately and recalibrate spending accordingly.
  • The ability to demonstrate control over cashflow is also important to request more funds from investors or if need be, apply for business interruption loans.
  • Have a platform that connects people, plans, systems, and data across the finance function
  • Ability to report data to business stakeholders quickly so it does not take days for management to take react and they can be more responsive to the changes in the market

Finance teams have focused  on the financial essentials, shrunk planning cycles from months down to days or even hours, re-defined break-even points, re-negotiated with lenders, taken charge of liquidity, while calmly, patiently and professionally keeping the rest of the management team and employees safe and on-board.

With almost no visibility of how countries and economies will emerge from the lockdown, the long tail of the crisis is yet to come. Meanwhile finance functions are remaining alert and agile. Even in these grim circumstances, these CFOs know there are opportunities for improved processes, innovation and growth in market share.


We understand the complex challenges that face the Office of the CFO and translate that knowledge into intuitive, enterprise-scale CCH® Tagetik performance management software solutions that drive business results. Contact us for addressing immediate needs of your finance teams.

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About CCH Tagetik 

CCH Tagetik is a financial and regulatory reporting tool that has been adapted for lease management. Over 200 global organisations already use the CCH Tagetik solution. It empowers decision makers and business users across all departments, helping them work smarter, streamline business collaboration, and make insight-based decisions with confidence.