Some thoughts on Liquidity Planning
Trinity Treasury Management

Some thoughts on Liquidity Planning

Article by Philip Wielenga, Director at Trinity Management Systems GmbH

A long time ago, I was the cash manager of Getronics, an ICT company which had subsidiaries in about 20 countries. Two important processes that were handled in Excel were:

  1. the daily cash report and
  2. the weekly cash forecast
    The daily cash report costed me 2 hours every day (approx. 40 hours per month). In the morning I received 20 emails from local cash managers with an attached Excel file. I encountered the following issues:
  • Due to regional PC settings, the comma (,) and the decimal point (.) were inverted in the 20 files
  • The currencies were different (JPY, HUF, USD, GBP etc.), so I had to recalculate the figures to EUR.
    The weekly cash forecast was a similar process; a template was sent out to regional controllers who filled in and returned the forms to me. Next to the issues mentioned earlier, I encountered the following additional problems:
  • Colleagues entered remarks via the Excel ‘comments’; when consolidating, all these remarks were lost.
  • the comparison of different versions was extremely time-consuming.
    This process costed me a 8 hours per week (approx. 64 hours per month).

In the Trinity Treasury Management System the daily cash report can be generated and sent to a group of persons automatically.

The weekly cash report can be handled in Trinity very easy as well. Treasury departments and their subsidiaries can upload their forecast data (in any currency) via Excel and/or the ERP system or enter the data directly in a predefined template. The same forecast template can be populated with actual data enabling an easy comparison between actual/forecast.

The process of forecasting will become very efficient because many rows in the forecast will be filled and updated automatically. All deal-related cash flows will also be immediately visible.

With help of the Trinity Treasury Management System, this process would have costed me 6 hours less per week (24 hours time-savings each month).

Total Time savings with Trinty Treasury Management System

  • Daily cash report: fully automated; 40h per month / more than 15% of an FTE.
  • Weekly cash flow forecast: 24h per month more than 9% of an FTE.