Is Treasury More Important Now than It Was Pre-Covid?

 

The answer unequivocally is “yes.”  On two fronts:

  1. Many companies suffered that had manual treasury processes and a significant portion of their data not in the cloud. These companies are now rushing madly to upgrade their treasury systems to products like Kyriba.
  2. Companies had to mobilize cash when interest rates shot up after a decade of being close to zero. The smartest companies are now using metrics from their ERP systems to drive positive change in accounts payable, DSOs, DPOs, inventory turnover, and other areas that either generate or use cash.

I think it is a shame that companies disinvested in their treasury functions for over a decade, thinking that the zero-interest rate environment would last forever.

Now, they are scrambling, as they see the greater contributions that can come from treasury.

Smart treasurers for years been adding value, as I pointed out in my pre-Covid white paper “8 Things Strategic Treasurers Are Doing to Avoid Back-Office Oblivion” (https://bondandcompany.com/resource/8-things-strategic-treasurers-are-doing/).

Realizing the full potential of your treasury function is not an easy or quick process. It requires investments in software, new technologies, and innovative personnel. But it can pay huge dividends.

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