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Updated: Apr 30

Almost all companies today have in place a cash management system. This system helps obtain bank statements automatically, plan current account balances, and manage all payments order on a unified system. In a summary, cash management is the basis of electronic banking.

Innovation seen as ground breaking ten years ago is today a standard functionality, the internationalization and the growing complexity in this field have led to professionalism in treasury.

To control cash management on a global scale, organizations need a holistic approach that goes beyond just a central treasury- one that brings together all group companies together on an efficient treasury platform. Every company no matter how small has to send payment orders to a bank and need to obtain account information. This is an idea foundation for a unify data in one system, all cash management processes have to be integrated globally -from signature authorizations to bank account balances in an overview of a group-wide planning data. As soon as all companies in a group have been united on a single platform, cash management knows about all financial inflows and outflows and the financial planning of every organizational unit. This applies equally to fully controlled subsidiaries in the cash pool and to independent companies in FX controlled entities anywhere in the world, ideally the organization connects the platform to all of its banking entities thereby allowing groups to process both domestic and cross border payments for each country in the system.

This system has an advantage of integrated bank communications that are quite obvious; namely, no standalone solutions in the subsidiaries, no unnecessary emails to headquarters, no time offset in reports- instead, signature, authorizations, existing accounts and individual banking relationship become transparent. There might not be need for the headquarters to insist on collection of electronic account statements from subsidiaries. Now, corporate treasury will enjoy access to all data in real time, full group-wide transparency, and the ability to intervene in any process- without having to centralize.

· Unified cash management paves the way for a completely new way of intercompany cooperation and holds potential for additional improvements.

· Intercompany reconciliation can result to netting throughout an organization thereby reducing payment transaction fee. Refinancing via intercompany sources opens up completely new opportunities for raising capital. Netting has a beneficial effect on intragroup currency risk as well, eliminating or substantially mitigating such risk or allowing the organization to limit it to organizational units. Globalized cash management can be a driving force behind further improvement of treasury processes in the organization.

· Treasury network based on the web: if treasury is to be a global process, it needs to be supported by an appropriate system. Therefore, a treasury network based on the web key. Recently a journalist was surprised to hear that web-based and mobile treasury systems have been on the market for many years, even before the invention of ipads and iphones. Often we tend to overlook the extensive opportunities networked solutions offer to organize processes across group companies and national boundaries.

· In the past, software had to be installed on a workstation or a laptop. Today, users open a browser window, enter the URL and start working. Today treasurers can access their treasury management system using almost internet enable hardware without worrying about local installation or technical requirement. A web-based system can be used in corporate headquarters as well as subsidiaries, the group’s financial status is constantly available to be checked in real time on any web-enabled device.

· All treasurers are enjoined to move to the digital age as a global concept to drive their work process in order to be able to simplify their work ethics, get relevant information at the go and collaborate along a broad spectrum of refined activity this would represent a quantum leap in data management and compliance.

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