What manual steps are involved and how to automate cash optimization

How to automate the manual steps in cash optimization

When your organization has undergone the ongoing cash management cycle including optimizing working capital (through AP/AR) and incorporating the Capex and Opex requirements, you hopefully and finally end up with cash in your bank account.

So how to get started to automate cash optimization

Organizations that pay attention to optimization, will then embark on the following additional steps (usually a manual exercise):

1. Determine the overall cash position. Decide on duration

2. Research. Evaluate available bank limits Evaluate bank credit ratings Check bank websites for rates/email banks for rate sheets Use AI to compare different bank rates

3. Make decision. Select 1-3 banks Confirm rates and terms with banks Record the information on a spreadsheet or in TMS if available Await bank reference number

4. Update systems if using a TMS, then update deal in TMS If no TMS, then update a spreadsheet with information to calculate interest Set calendar reminder for maturity Do interest accruals Update monthly report

5. On Maturity. If bank supports the function, you will receive a reminder a few days ahead Many banks do not provide maturity notifications

6. Advise bank on choice (i.e withdraw the funds or rollover to a new contract) Start process all over

7. Prepare management and risk reports. Interest and comparative reports Maturity and time buckets bank limits and utilizations Bank credit rating

Alternatively, Let Likwidity do almost all of the above with some of the following

• optimize cash management with SaaS

• optimize cash management with Software

• optimizing cash flow for businesses

• We can also help how to uncover optimizing cash flow

• What is collaborative cash flow optimization