• Cash flow forecasting

    Cash flow forecasting is considered good practice within the financial industry, yet many treasurers struggle to achieve accurate forecast results. Over the next few months, we will look at how cash flow forecasts are prepared and the technology available to support the process. This month, we provide an introduction to the topic and consider the potential barriers preventing treasurers from obtaining quality data and achieving more accurate forecast results.

  • Working capital management

    Working capital management entails the strategic co-ordination of a range of activities related to cash, accounts receivable, accounts payable and inventory. Technological advances have enabled finance and treasury managers to look into these activities more clearly and efficiently and thus to influence the use of working capital proactively.

  • Financial supply chain – testing the links

    In last month’s Cash Management article, we discussed working capital management and its implications from the point of view of the financial supply chain. This month, we take a closer look at some of the key processes within the financial supply chain, identify the areas where inefficiencies can arise and give an overview of the actions that can be taken to address these.

  • Working capital and the financial supply chain

    In last month’s Cash Management article we looked at financial supply chain management and the reasons why this approach has become a major topic in the treasury world. This month we look in more detail at the relationship between working capital management and the financial supply chain.

  • Introduction to financial supply chain management

    Taking a holistic view of the financial supply chain has become one of the hot topics in the international treasury circuit. During 2007, we will be examining the different issues surrounding the supply chain and the ways in which treasury can add value by helping to manage the supply chain. In this month’s article, we provide an introduction to the core concepts.

  • Commercial cards

    Recently introduced in China, commercial cards are an alternative to traditional purchasing methods which can enable companies to make savings and gain greater visibility over their purchases. We discuss the associated benefits and the potential drawbacks.

  • Foreign exchange transactions

    Since the revaluation of the renminbi in July 2005, the types of foreign exchange transaction available to companies in China have been steadily expanding. We explain the three main types of transaction currently available and discuss some of the recent changes.

  • Foreign currency accounts

    If a company earns and spends money abroad, currency accounts can help limit the risk and expense of converting funds to and from its home currency. In addition, foreign currency accounts can, in some cases, provide a means of managing currency exposures. By keeping foreign currency payments in the currency in which they were made, a company may save money and will also benefit if exchange rates develop favourably.

  • Tax implications of cash pool management

    An increasing number of international operating groups have established either a notional or a physical cash pool. This enables the group to manage the working capital of the local companies on a daily or weekly basis. In this article we discuss the two types of cash pool and the tax implications that may arise as a result of cash pool management.

  • How to introduce a cash pool in your group

    Cash pools are a popular cash management tool, often enabling corporates to achieve cash savings while improving their liquidity management. However, the benefits will depend largely on the suitability of the type of cash pool to the needs of the company, as well as the success of the implementation process. In this article we look at how to establish cash pooling arrangements so that the best possible ‘fit’ is achieved and implementation is as painless as possible.