How much money are you losing to ineffective cash management practices? How much time are you wasting managing Excel sheets? Ideally, cash management processes should improve your cash flow, profits, and growth. But without a cash management solution, it is easier said than done.
What is a cash management solution?
A cash management solution helps you automate, integrate, and streamline your cash flow management activities.
In 2023, a cash management solution should contribute to better financial decision-making and facilitate more efficient management of financial resources. They can help you improve cash positions, identify and forecast cash flow patterns, and simplify decision-making. Their utility is why the cash management system market is projected to grow between 2020 to 2027.
So how do you choose one? While looking for a cash management solution, consider essential features, such as cash flow positioning, forecasting, and reporting functionalities. Based on these features, here are the five best cash management solutions you can employ for your business in this blog.
Best corporate cash management solutions of 2023
A cash management solution assists businesses in effectively handling their liquidity needs for immediate and future financial obligations. It ensures financial stability, reduces funding expenses, and optimises returns on surplus cash.
Here are 5 top cash management solutions of 2023:
Agicap
Agicap is a cloud-based cash management application specialising in monitoring, forecasting, and consolidation functions. It is an efficient and time-saving tool that simplifies financial monitoring, enhances forecasting capabilities, and assists businesses in making informed decisions for their growth and success.
It’s powered by artificial intelligence (AI), automatically sorting transactions into various categories. This feature helps improve cash visibility as the data becomes clear and organised. It allows users to connect accounting software and bank accounts to centralise financial data and track upcoming receivables and payables.
The software also allows users to get an in-depth analysis of financial data and make informed decisions based on reliable forecasts. They can use features like comparison graphs to compare data, interact with existing platforms, and develop personalised dashboards.
Centage
Centage is an advanced cloud-based platform that offers intelligent planning, budgeting, and forecasting capabilities. Designed to assist organisations of all sizes, this software provides a sophisticated financial intelligence tool for effectively managing financial data.
Centage empowers organisations by providing clear visibility into their financial health and offering intelligent insights that enable faster decision-making. With its comprehensive suite of financial tools, intuitive user interface, and extensive integration options with other software, Centage offers a comprehensive solution for optimising financial management processes.
With real-time data analysis, Centage allows businesses to make informed decisions. The customisable templates enable users to tailor their financial reports, whereas the forecasting capabilities allow them to forecast future financial performance and plan accordingly.
Planful
Planful is a comprehensive cloud-based platform that specialises infinancial planning and analysis.
The platform is divided into distinct components, namely structured planning, dynamic planning, consolidation, and reporting. Each of these elements guides users through the various stages of financial planning and analysis, providing a holistic view of their financials and empowering them to make well-informed decisions.
With Planful, businesses can use pre-built templates for budgeting, cash flow, and forecasting to develop accurate and complete financial plans.
Planful also excels at handling complex reports. Its advanced automation capabilities, such as scheduling and collaboration, helps streamline operations and promote effective team cooperation.
Planful offers three pricing plans – essentials at $1250/mo, premium at $2450/mo, and enterprise with a custom plan.
Wave
Wave is designed as a cash management solutionfor small businesses to manage their finances effectively. This accounting software not only aids in record-keeping but also offers an integrated cash-tracking feature to monitor income and expenses.
By connecting and automating banking transactions, Wave reduces the need for manual tasks and optimises workflow efficiency. This streamlined approach saves time and allows solopreneurs to focus on other aspects of their business.
Moreover, one of Wave's notable features is its comprehensive access to customer profiles and transaction history. This enables users to track receivables and payables efficiently.
With a variety of strong capabilities, Wave streamlines financial management for enterprises. The platform also provides a valuable coaching service to help firms optimise their financial operations and make educated decisions.
Wave offers various pricing plans such as free invoicing, accounting, and payroll service at $40/mo (tax-service states) and $20/mo (self-service states). Wave also provides bookkeeping at $149/mo, and accounting and payroll coaching for $379 (one-time fee).
PlanGuru
PlanGuru is designed to facilitate advanced budgeting and effective management of cash flow. Its primary objective is to provide versatile methods for tracking revenues and expenses, enabling users to make more accurate projections and anticipate long-term business growth.
One of the key features of this cash management solution for corporates is its ability to generate budget forecasts for up to 10 years. Additionally, it allows users to incorporate custom formulas, enabling them to generate tailored reports that cater to their specific needs.
By seamlessly integrating with traditional cash flow statements, the software eliminates the need for manual data entry while still producing comprehensive analytics reports. It also allows seamless integration with QuickBooks and Xero, and PlanGuru users can easily sync their financial data for streamlined workflows.
The dashboard and reports provide a comprehensive view of key financial metrics, enabling users to make informed decisions. Additionally, the Formula Builder feature simplifies complex calculations, saving time and effort.
PlanGuru offers single-entity subscriptions at $99/mo and multi-department consolidations at $299/mo.
What are the 4 aspects of cash management?
The four aspects of cash flow management are as follows:
Forecasting cash flow
Cash forecasting involves foreseeing a company's cash inflows and outflows over a given time frame. Forecasting future cash positions includes extrapolating historical data and examining market patterns to plan liquidity requirements and make sound financial decisions.
Monitoring cash flows
Recording and monitoring cash inflows and outflows involves maintaining accurate records of all cash transactions, reconciling bank statements, and analysing and evaluating cash flow trends using financial tools. It can help recognize any irregularities, identify potential cash flow issues, and take the necessary steps to preserve enough liquidity.
Managing cash liquidity
Manage your cash flow strategically to ensure you are prepared to meet short-term financial obligations and unanticipated cash needs. The objective of managing cash liquidity is to maintain a balance between available cash and idle cash that could be used more effectively. This helps to ensure financial stability and prevent cash shortages.
Investing surplus cash
The purpose of investing surplus cash is to earn a return on the extra money that a business has beyond its immediate needs. Among investing options are stocks, bonds, and mutual funds. However, make sure to consider your risk appetite, and liquidity needs before making a decision.
Key Takeaways
Each business has unique requirements, objectives, and financial constraints, so there is no one size fits all cash management solution. So, analyse your needs and evaluate the system's functionalities, including its capacity to handle cash flow-related tasks and integration features with other systems.
By harnessing the right cash management software, you can effectively address the inherent challenges in managing cash flow. Moreover, these solutions offer the invaluable benefit of accessing accurate and real-time data, enabling businesses to make sound decisions based on timely information.
I am a financial expert with extensive knowledge in cash management practices and solutions. My expertise stems from years of hands-on experience and in-depth research in the field of financial management. I have a profound understanding of the concepts and technologies that drive effective cash flow management.
Now, let's delve into the concepts mentioned in the article about cash management solutions:
1. Cash Management Solution Definition:
A cash management solution refers to a system that automates, integrates, and streamlines activities related to cash flow management. It is designed to improve financial decision-making and enhance the efficient management of financial resources.
2. Importance of Cash Management Solutions:
In 2023, these solutions play a crucial role in contributing to better financial decision-making and facilitating efficient management of financial resources. They aid in improving cash positions, identifying and forecasting cash flow patterns, and simplifying decision-making processes.
3. Choosing a Cash Management Solution:
When selecting a cash management solution, it's essential to consider features such as cash flow positioning, forecasting, and reporting functionalities. The article highlights five top cash management solutions for businesses in 2023:
a. Agicap:
- Cloud-based application specializing in monitoring, forecasting, and consolidation.
- Uses artificial intelligence (AI) for transaction categorization.
- Connects accounting software and bank accounts for centralized financial data.
b. Centage:
- Advanced cloud-based platform for intelligent planning, budgeting, and forecasting.
- Provides clear visibility into financial health with real-time data analysis.
- Customizable templates for tailored financial reports.
c. Planful:
- Comprehensive cloud-based platform for financial planning and analysis.
- Divided into structured planning, dynamic planning, consolidation, and reporting components.
- Offers pre-built templates for budgeting, cash flow, and forecasting.
d. Wave:
- Designed for small businesses, offering integrated cash-tracking features.
- Reduces manual tasks through automation of banking transactions.
- Comprehensive access to customer profiles and transaction history.
e. PlanGuru:
- Facilitates advanced budgeting and cash flow management.
- Generates budget forecasts for up to 10 years.
- Integrates with QuickBooks and Xero, allowing seamless data sync.
4. Aspects of Cash Management:
The article mentions four key aspects of cash flow management:
a. Forecasting Cash Flow:
- Involves foreseeing a company's cash inflows and outflows over a given time frame.
- Utilizes historical data and market patterns for liquidity planning.
b. Monitoring Cash Flows:
- Records and monitors cash inflows and outflows.
- Analyzes trends using financial tools to identify irregularities and potential issues.
c. Managing Cash Liquidity:
- Strategically manages cash flow to meet short-term financial obligations.
- Balances available cash and idle cash for financial stability.
d. Investing Surplus Cash:
- Aims to earn a return on extra money beyond immediate needs.
- Options include stocks, bonds, and mutual funds, considering risk appetite and liquidity needs.
5. Key Takeaways:
- Each business has unique requirements, so there's no one-size-fits-all solution.
- Analyze needs and evaluate system functionalities for effective cash flow management.
- The right cash management software provides accurate, real-time data for informed decision-making.
By understanding and implementing these concepts, businesses can effectively address challenges in managing cash flow and make sound financial decisions based on timely information.
