CFOs Looking for New Growth Levers Are Targeting Idle Cash

CFOs Prioritizing Cash Flow Improvement

77.9%

Percentage of CFOs who see improving the cash flow cycle as very or extremely important.

Cash Conversion Days

24.2 days vs 44.4 days

Average days to convert cash for top-performing firms compared to lower-performing peers.

High-Performing Teams Using Working Capital Solutions

80%

Proportion of high-performing finance teams using solutions like virtual cards for growth.

§ 01 Executive Snapshot

What: CFOs are shifting focus from simply holding cash to optimizing its movement and usefulness within businesses.
Who: Chief financial officers (CFOs) and their finance teams across various enterprises.
Why it matters: This change in approach to cash management can significantly enhance operational efficiency and resilience amid economic uncertainties.

77.9% of CFOs regard improving the cash flow cycle as 'very or extremely important' for their strategic planning in the upcoming year.
Top-performing middle-market firms convert cash in an average of 24.2 days, while lower-performing peers take 44.4 days.
80% of high-performing enterprise finance teams utilize working capital solutions like virtual cards for growth, compared to just 2% of bottom performers.

The traditional view of corporate cash as merely a safety net is evolving; CFOs now prioritize the velocity and strategic deployment of cash.
The introduction of AI in cash forecasting is reshaping financial decision-making processes, pushing for a more proactive management approach.

Immediate: Companies may experience improved liquidity management and agility in their financial operations, leading to competitive advantages.
Long-term: The integration of AI and modern ERP systems will likely redefine how businesses forecast and manage cash, fostering a more strategic financial landscape.

Potential risk of legacy ERP systems lacking integration capabilities with new technologies, which could hinder cash management optimization.
The reliance on AI and automated systems may raise concerns about data accuracy and the need for ongoing oversight and adjustments.

Monitor the adoption rate of AI tools among CFOs, as over 80% are either using or considering AI for cash management.
Look for developments in ERP modernization initiatives, particularly those addressing API capabilities for accounts receivable management.

§ 07

What are CFOs focusing on regarding cash management?

CFOs are shifting from simply holding cash to optimizing its movement and usefulness within businesses.

Why is improving the cash flow cycle important for CFOs?

77.9% of CFOs regard improving the cash flow cycle as 'very or extremely important' for their strategic planning in the upcoming year.

How is AI impacting cash management for CFOs?

The introduction of AI in cash forecasting is reshaping financial decision-making processes, promoting a more proactive management approach.

Who is likely to benefit from modern ERP systems in cash management?

Companies that integrate AI and modern ERP systems are likely to experience improved liquidity management and agility in their financial operations.