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Total liquidity management is at the heart of the CFO’s agenda

The holy grail for consultants and analysts is brand new ways of looking at the business, new insights into the basic dynamics of the business. This enables them to better understand what is happening in a business, and, of course, attract more consulting. At the Association of Corporate Treasurers Annual conference in May 2014 were showing their new angle on business performance.

Total Liquidity Management 

PwC believe that protecting the value of business performance is the next level in delivering financial results. It is driven by driven by four key areas, as shown below:

Source & Copyright©2014 - PwC 

Significant benefits

PwC have found that Total Liquidity Management can deliver significant benefits:

  • business growth from a cash and banking framework designed to provide the best support for the operating businesses
  • effective use of technology by driving straight-through-processing and data efficiencies
  • improved visibility through more visibility to cash and working capital activities, and cash balances throughout the business
  • asset optimisation from enhancement to cash, liquidity and working capital cycles
  • cost efficiency from lower bank fees and better use of transaction banking services, including reduced margin leak on FX conversions for payments and foreign collections
  • workforce effectiveness with employees having better understanding of their role in relation to cash priorities and by focusing on incentivised activities that drive most value
  • corporate credibility is improved by better forecasting which gives confidence to the business outlooks that increase shareholder confidence.

In essence, PwC claim that Total Liquidity Management delivers improved business performance from better cash flow and central liquidity which is what every CFO dreams of.

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