Cash management automation: Benefits & best practices

Cash management automation: Benefits & best practices
  • Money transfer
  • Currency exchange

Cash management automation offers multiple benefits for your entire business. You can profit from an increased efficiency and free up financial resources as well as valuable time of your finance and accounting staff, while increasing visibility and decreasing failure rates. We are going to show you how to successfully set up cash management automation and generate an automated cash flow for your business.

What is cash management automation?

Cash management automation refers to the use of technology and software solutions to enhance the administration and control of a company’s finances. Overall, the aim of cash management automation is to streamline financial processes, save time, and enhance the precision of transaction tracking, ultimately contributing to better financial health for the company.

This can encompass various aspects, such as automating payment processes, managing cash flow, foreign currencies and transactions, liquidity management, and monitoring the inflow and outflow of funds. By utilising specialised software, businesses can track their financial transactions more efficiently and accurately.

Furthermore, an automated cash flow solution enables the integration of banking services and the automatic synchronisation of financial data, leading to better control and planning. Cash management automation helps improve liquidity and minimises risks associated with traditional cash management, such as failures due to manual entry.

What are the benefits of an automated cash flow management?

Cash management automation offers a wide range of benefits, including cost savings, efficiency, accuracy, more resources and fewer failures.

Cost and time savings

Automated cash flow processes provide significant cost savings, both directly and indirectly. Just like automating any other business processes, cash management automation frees up valuable time for your CFO and the entire accounting team, enabling them to focus on more strategic tasks. Moreover, at a larger scale, you can achieve the same level of productivity without the need to hire additional personnel.

Additionally, there is substantial potential for indirect cost savings when dealing with foreign currencies. Suppose your business frequently engages in transactions involving foreign currencies. In that case, you can streamline the process by establishing recurring foreign exchange (fx) transactions. This allows you to automatically purchase a specified foreign currency amount on a weekly or monthly basis, ultimately saving time and mitigating the currency fluctuation risk.

Increased efficiency

Increased efficiency in the context of cash management automation means that CFOs, accountants and other finance personnel can achieve more in less time. One key aspect is the increased processing speed of each and every transaction while simultaneously decreasing the failure rate, which is unavoidable in manual entries.

Further, when implementing cash management automation processes, the efficiency of your remaining manual tasks will also see significant improvement. With your staff having more time to focus on these tasks, you can enhance the overall effectiveness of your finance and accounting department while simultaneously reducing costs.

Streamlined payments

Automated transactions have the potential to streamline a wide range of incoming and outgoing payment processes. In the absence of automation, international businesses often find themselves manually converting customer payments to their home currency or manually creating invoices to settle foreign supplier bills.

With cash management automation, these challenges are resolved effortlessly. You can seamlessly exchange currencies at predefined intervals and automatically convert incoming payments into your preferred currency, saving time and minimizing currency conversion complexities.

Minimised risks

For those regularly involved with foreign currencies, the option to establish recurring FX transactions adds a further level of convenience. It enables you to automatically acquire a specified amount in a foreign currency on a weekly or monthly basis.

However, automated cash flow management not only optimizes your time but also minimizes your vulnerability to currency fluctuation risks. As a result, you’re always well-prepared with the necessary currencies to facilitate seamless business dealings with your international partners.

How to achieve cash management automation

To achieve an automated cash flow process, the first step starts with analysing your financial processes. This includes assessing your existing cash management processes and to identify areas that are manual and prone to inefficiencies.

When making the analysis, make sure to inform yourself about the latest cash management automation functions, including dynamic discounting for faster invoicing as well as accounting pre-classification by automatically tagging transactions. Assigning tags enables you to easily categorise your expenses, incoming funds, and currency exchanges, so that your accounting department becomes much more efficient and error proof.

Further, make sure your automation system allows you to make recurring transactions to streamline incoming and outgoing payments as well as currency exchanges. Advanced features of an automated cash flow process also include automatic payments or currency exchanges based on a certain balance threshold instead of a predetermined timeframe.

amnis automates your processes

amnis’ solutions are designed to streamline all your cash management processes, whether you require automated payments, foreign currency exchanges based on balance thresholds, or predefined weekly or monthly schedules. With amnis, you have comprehensive support. Additionally, amnis’ dynamic discounting features expedite your invoicing procedures.

amnis enables you to assign tags to payments, invoices and currency exchanges, resulting in enhanced transparency, accelerated bookkeeping, and more comprehensive reports and insights into your organization’s spending. No matter whether you need an amnis multi-currency account to make international payments at local conditions (without SWIFT fees) or a business debit card for  business expenses, amnis automates your processes to free up valuable time and resources.

Set up your free demo account with amnis and check out all automation features.

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Sabrina Maly
As a marketing manager at amnis I provide SMEs with fx market, international business and news updates on our blog & FAQ page.
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