Top cash management issues & payments mistakes to avoid

Managing cash and working capital effectively requires visibility and treasury management across all institutions, currencies, and companies to ensure smooth operations and financial stability. The more a company grows, the more banks and financial institutions it has to deal with, which makes it increasingly difficult to get complete and real-time insights. A recent survey by Blackline found that 62% of respondents believe that understanding cash flow in real time is more important than ever before, especially in the midst of economic uncertainty. Nevertheless, nearly all participants wished for greater confidence in their cash flow data.

A major problem lies in the time-consuming process of aggregating data from disparate sources. By the time it’s consolidated it often becomes outdated - and nearly half of companies worry about making financial decisions based on outdated information.

A recent article by Forbes revealed that, similarly to cash management, a vast number of companies still rely on manual payment execution for both local and international payments. Over half of global businesses rely on manual payment processes and lack digitization, while over 40% have disconnected payables and receivables processes. The problem arises from the fact that an international company needs access to multiple currencies and financial institutions.

In the absence of an efficient system, each payment must undergo multiple approvals internally and, when sending or receiving money internationally, it also involves multiple intermediaries, giving little visibility to the status of payments once they have been expedited. Using manual processing can lead to wasted time and errors, as well as a negative impact on the bottom line of a company since fees are incurred at each stage.

Furthermore, fragmented payment workflows create opportunities for fraudsters to exploit security gaps, exposing businesses to financial losses and reputational damage. Lack of consistent approval processes and controls exacerbate these risks, highlighting the urgent need for integrated payment solutions.