BankingTechnology
August 11, 2020

Virtual Accounts Help Treasury and Accounting Bridge Multiple ERPs 

The advantages of using virtual accounts for accounting and reconciliation across ERPs.A member at a recent NeuGroup meeting described his company’s pilot initiatives with its primary transaction banks in Europe to roll out virtual accounts (VAs). Treasury is doing the projects in partnership with accounting and are aimed at reducing the all-in cost of account reconciliation, cash application and account maintenance—which EY has estimated at about $4,000 per account—while also improving liquidity access and management. Tangible benefits. The VA advantages…
COVID-19Cyber riskTechnology
August 11, 2020

Cost-Cutting Corporates Need to Factor in ROI of Cybersecurity

Quantifying the value of cyber defenses as some companies look to cut costs amid COVID. Cybersecurity is a major concern for NeuGroup member companies, and the pandemic has forced them to pay more attention to the risks of having so many people in finance roles working from home as the push for accelerated automation and digitalization grows. At the same time, COVID-19 has also pushed companies to tighten their belts. But cutting spending on cyber defenses looks like a potentially costly…
Cash & Working CapitalTechnology
August 11, 2020

Exploring Cashforce’s Forecasting Solution, Among Others

Bottoms-up, top-down, ERP or bank statments? During a recent discussion about cash forecasting at NeuGroup’s Global Cash and Banking Group, one member asked if any of her peers had done demos of solutions from Cashforce. Another member said his company had reached the point where Cashforce is “going demo something” once an NDA is in place. “We have found them to be very open-minded,” the member said.That’s important because his company has decided it does not want a forecasting system…
ESGSenior Executive
August 6, 2020

Treasury’s Key Role as Corporates Support Black Communities

Treasurers weigh investments, deposits and transactions that will benefit Black communities.Treasury teams within the NeuGroup Network are playing a key role at companies that are stepping up efforts to support Black communities and Black-owned financial institutions. NeuGroup members discussed their initiatives and options at a recent Virtual Interactive Session (VIS) that followed a webinar in which Netflix detailed its commitment to allocate 2% of cash holdings—initially up to $100 million—into financial institutions and organizations that directly support Black communities in the US.Director of…
ComplianceRisk Management
August 6, 2020

When an Auditor Puts on the Consultant’s Hat

How much and when should internal auditors report about projects outside of their audit plan? Internal audit is increasingly being called upon to get more involved in nontraditional types of engagements—projects that don’t fall within the scope of the audit plan. These might include counsel, advice, facilitation, data analytics and automation. From company to company, managing these projects varies, according to members of NeuGroup’s Internal Auditors’ Peer Group. In a recent virtual discussion with IAPG members, the question was whether they…
COVID-19Treasury Management
August 4, 2020

Treasurers Master Managing Remotely, Face New Challenges

Challenges facing treasurers include communication, hiring, reviews and figuring out what lies ahead.The pandemic has demonstrated that treasury operations can function smoothly and without major problems when team members and managers are forced to work from home (WFH) for several months—while at the same time exposing the shortcomings and challenges of working and managing remotely. That mixed picture, as well as unresolved questions about the future, emerged during a recent virtual discussion among members of the Life Sciences Treasury Peer…
Cash & Working CapitalTechnology
August 4, 2020

Cash is King, Especially If You Know Where It Is at All Times

Pinpointing where all your cash resides—and how much you have—depends on good technology.The COVID-19 crisis has highlighted the value of technology that allows treasury to know—in real time—how much cash is available and where it is. A recent virtual meeting of NeuGroup’s Tech20HG—for treasurers of high-growth tech companies—revealed that the technology that treasury teams use varies: The pre-meting survey of members showed that 45% of respondents do not have a treasury management system (TMS), compared to 55% that do.Those with a TMS…
Cash & Working CapitalCOVID-19Technology
July 30, 2020

How AI Can Hit the Cash Forecast Bull’s-eye When the Wind Is Wild

What happens to your AI-based model when historical data and cash flow patterns are disrupted?Cutting-edge cash forecasting models that make use of artificial intelligence (AI) and machine learning will, inevitably, require manual adjustments by humans to account for seismic disruptions like the pandemic. The good news is that AI models will eventually catch up with the new normal, becoming more accurate with less intervention. That was among the insights offered by Tracey Ferguson Knight, director of solution engineering (treasury) for HighRadius,…
Accounting & DisclosureBanking
July 30, 2020

On Track: Banks Adopting CECL Not Derailed by COVID-19

Regulators have allowed banks to delay implementing CECL, but most are well on the way to adopting the standard. Banks have been given extra time to implement the FASB’s CECL standard, but most are continuing their push to adopt the measure. The CARES act passed by the US Senate back in March offered banks the option to pause implementation until either the end of the year or the end of the COVID-19 national emergency, whichever came first. According to meeting material…
Cash & Working CapitalCOVID-19
July 28, 2020

Helping Hands: How Corporates Are Aiding Customers and Suppliers

Supply chain finance and how the “we’re in this together” approach to the pandemic is playing out.The COVID-19 crisis has put the meaning of business community—emphasis on community—into sharp relief as some businesses have survived well or even thrived (tech, consumer staples), while others have suffered devastating losses (retail, travel and hospitality). At few points in recent memory has the mutual reliance on comrades in commerce been more important; and as in families, it’s often the stronger of the business…