Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 45)

ONLINE WWW VERSION CORPORATE FINANCE cash balances for the bank portals. Still, she needed to work thoroughly to make sure the company's cash position was accurate. As the company opened new subsidiaries in three different countries, this treasury professional began working with two local banks. Two foreign currencies were added to her portfolio as well. She adapted the tables and calculations in her spreadsheets fairly quickly; however, updating the numbers and converting them into Euro now took a bit longer. Luckily she received support from the local accountants at the subsidiaries. This saved time, but it also created uncertainty as she now had to juggle multiple versions of the documents. Additionally, it was very difficult to verify which cash flows had been updated accurately. And because she bought multiple forwards and options to hedge foreign exchange risk, her plans became even more complex. And so it happened: the updated num- bers were provided too late from one of the new subsidiaries. The treasury professional was not informed about the incoming order worth several million Euros. The exchange rates were unfavorable, and the loss was significant. The company had to issue a profit warning. At this point, the CFO began to re-think the idea of investing in a treasury management system. A TMS would capture all cash flows from across the enterprise, and make financial transactions available and visible. Daily market data feeds can help to convert cash flows into the group currency automatically. But as everything is documented end-to-end, treasury professionals have the ability to back track the original local currency cash flow. When hedging FX risk, derivative trades can be Treasury management systems are not just for large companies. - OCT LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE Treasury professionals, particularly in mid-market companies, have to determine when the right time might be for their organization to take the leap from working in spreadsheets to investing in a Treasury Management System (TMS). But when does this investment pay off? In a recent survey of more than 130 finance professionals, 81 percent of respondents say they would gain time for strategic analysis by automating operational workflows. Among those, 14 percent believe they could save at least 50 percent of their time. This is not a trivial return on investment. An example of a family-owned automotive supplier, which began to expand regionally, illustrates a common scenario when making the switch from Excel to a TMS: A treasury professional based in headquarters was still performing all tasks in Excel. As she only had to keep an overview on a handful of bank accounts, it did not take her a long time to collect - N°91 When is the right time to switch from spreadsheets to a treasury system? How soon can companies see the pay-off? For mid-sized companies, it is sooner than they think. / NOV / DEC 2015 Making the switch from Excel to a Treasury System 45

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015

Table of contents
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
CEO impersonation
Using analytics to cope with uncertainty and volatility for treasury
IFRS 9 : Nécessite d’une reorganisation bancaire majeure
Taux zéro : de nouvelles stratégies pour un nouveau monde
Investing surplus cash in repos
Warranty & indemnity insurance
Making the switch from Excel to a Treasury System
Corporate treasury in the digital age
Fini le casse-tête des paiements internationaux pour les entreprises !
Bank Independent Cash Pooling
Gérer l’offre de retraites : un choix complexe pour l’entreprise

Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015