1. Cash Forecasting Trends
in Asia 2013 (SURVEY RESULTS)

2. The BIG Question:
Where’s the Cash?
Optimising cash flow forecasting offers tremendous potential for
companies to improve their financial performance. By employing
industry best practices, corporations can have a better view of
their cash position, which enable them to manage liquidity risk
more effectively.
In the aftermath of the recent financial crisis, corporations have
learned the importance of effective cash and liquidity
management. As banks and lending institutions become more
restrictive in their lending policies, companies had to turn to their
own internal resources to smooth any gaps in their cash flow curve
or invest in business expansion. In order to optimise the use of
their own resources, reliable data representing actual and
expected cash position must be available. Without efficient cash
flow forecasting, it would be very difficult to track, analyse and
manage risks. While 100% accuracy may not be possible to
achieve, aiming for the highest level of precision in forecasting
cash positions should be a top priority for corporate treasurers and
CEOs. The latest and most comprehensive treasury management
survey revealed just that.

3. Survey Says: Cash Flow
Forecasting, Primary
Challenge Across Asia Pacific
Bank of America Merrill Lynch and SunGard recently
released the Asia Pacific Treasury Management Barometer
Survey 2013 wherein five key priorities for treasurers in Asia
Pacific over the next 12-24 months were identified. These
are:
1.
2.
3.
4.
5.
Improving cash visibility
Yield enhancement and interest expenses
Concentrating cash
Rationalising bank accounts
Mitigating counterparty risk
“Asia is not alone in highlighting visibility and connectivity
as a key challenge and focus for the next 12 – 24 months,”
notes Steve Evans, COO, Treasury, Payments and
Messaging, SunGard. “But while attitudes towards
technology in treasury remain conservative across the
region, it is interesting to note that when asked: ‘What are
the greatest barriers to accuracy in forecasting?’, the vast
majority identified, not technology limitations or their
banking partners, but their own internal processes and
policies. The key message here is that technology can be
both an effective tool and a long term enabler, but the
quickest wins will come from reviewing and restricting your
own policies and procedures.”
Cash flow forecasting, a modeling method used by
companies to gauge future cash positions, was
identified as a ‘pain point’ by treasurers operating in the
Asia Pacific region. The survey revealed that only 14%
indicated complete satisfaction with their existing cash
flow forecasting processes, while the majority (70%)
remain only moderately to somewhat satisfied, a clear
indication that across the industry, there is substantial
room for improvement. Among the key challenges
cited were inaccurate data, lack of integration,
cumbersome reporting processes and inefficient staff.

4. Following are the results of the survey of over 900
treasurers who shared their views and pinpointed their
primary focus for the next 12-24 months. Conducted by
Bank of America Merrill Lynch and SunGard, these
results were part of the Asia Pacific Treasury
Management Barometer 2013 report released recently.

5. Do you use cash flow forecasting tool?
67% of respondents do not currently use any
form of forecasting tool for cash.

6. What system does your treasury use for cash flow
forecasting and overall treasury management?
Of the respondents who use cash flow forecasting programs, a
huge bulk (69%) rely on spreadsheets.

7. What are the key challenges to accurately
forecast your cash flow?
There are several key challenges to accurately forecast cash flow. Inaccurate sales
target projections and lack of systems integration were among the top concerns.

8. What are the primary areas of focus for your
treasury in the next 12 months?
The priority is visibility. One quarter (25%) of total respondents
pinpointed improving cash visibility as their main treasury priority.

9. How would you describe your level of
cash visibility?
Over 73% of treasurers polled believe that their level of
cash visibility is sub-optimal.

10. Correlation between technology usage and
cash flow management
Company Revenue
>$10 billion
$5-10 billion $1-5 billion $500 million - $1 billion
$100 - 500
million
Spreadsheets
Specialist treasury workstations
60%
28%
48%
22%
69%
17%
77%
11%
78%
9%
Hosted/cloud-based treasury management
systems
Treasury module from ERP vendor
In-house applications
11%
26%
12%
11%
1%
32%
23%
56%
19%
33%
29%
25%
23%
9%
21%
End-to-end treasury & liquidity solution
provided by banking partner
9%
4%
2%
2%
1%
Treasury applications provided by banking
partner via eBanking portal
Other
9%
7%
0%
5%
2%
4%
4%
0%
5%
5%
According to the 2013 Asia Pacific Treasury Barometer, a significant portion of those that do use cash flow
forecasting tools, utilize spreadsheets. With spreadsheets, there is no connectivity to other systems. Frequently,
results are often received in other spreadsheets. The information must then either be consolidated or even manually
re-keyed. This process clearly opens up the possibility of operational risk. Furthermore, spreadsheets used for
processes like cash flow analysis often have multiple macros that come with certain operational risks. To address
these issues, several banks have started offering offline cash visibility and global cash position tools based on excel
spreadsheets.

11. How satisfied are you with your cash
forecasting processes?
*With cash flow forecasting tool
20% of treasurers who are already using cash flow forecasting
tools are very satisfied with their cash flow forecasting process…

12. How satisfied are you with your cash
forecasting processes?
*Without cash flow forecasting tool
…while of those treasurers who are not using cash flow forecasting tools,
only 10% are very satisfied with their cash flow forecasting process.

13. Want to learn more?

14. Learn how to optimise cash flow through effective
cash forecasting and improved visibility in developed,
emerging and cash trapped countries at
19-20 November 2013 | Singapore
To attend the conference, email enquiry@iqpc.com.sg or call +65 6722 9388
www.cashliquidityasia.com