CEOs and boards are increasingly seeking real-time, data-driven insights from their finance teams. They expect CFOs and finance professionals to offer immediate, data-enabled decision support in a world where decision-making happens quickly. Finance plays a crucial role in generating a true picture of current cash at any given point in time—an essential piece of decision-supporting data for the board. This is where an on-demand cash view comes into play, surpassing traditional cash flow statements and direct method forecasts by uncovering hidden growth opportunities and mitigating risk in real-time.

Detecting Hidden Growth Opportunities

With a real-time cash view, finance teams can swiftly identify and capitalize on revenue-generating opportunities that may otherwise go unnoticed. Here are a few examples:

• Individual customer demand: By closely monitoring a specific customer's purchases or usage, finance teams can identify sudden upsurges, indicating potential scaling. Armed with this knowledge, they can proactively engage sales teams to better understand and meet the customer's evolving needs.

• Overall market demand: An uptick in sales for specific products or services can serve as an early indicator of changing market demand. Finance, sales, and operations can quickly assess these trends and respond by ramping up production, expanding the workforce, and strategically leveraging marketing capabilities. By staying ahead of the competition, businesses can seize opportunities and gain a competitive edge.

• Sales activity: A sudden increase in a salesperson's closing rate may signify a breakthrough in their sales approach or technique. With real-time visibility into this trend, managers can promptly replicate successful tactics across the entire salesforce, amplifying their impact and driving revenue growth.

Addressing Underlying Risk Issues

An on-demand cash view not only reveals growth opportunities but also allows businesses to address potential risks before they escalate. Here are some risks that can be identified and mitigated through real-time cash monitoring:

• Customer inactivity: A decline in a customer's purchasing level could indicate dissatisfaction with the product, fulfillment, or customer service. Detecting this early empowers businesses to pinpoint and address the underlying issues, developing strategies to salvage the customer relationship and prevent customer churn.

• Slow-paying customers: The ability to promptly identify unexpected delays in customer payments is crucial for resolving collection issues. With real-time visibility, sales teams can leverage their customer knowledge to recommend the most effective approach to address payment concerns and ensure timely payments.

• Slow-paying market: A slowdown in payment for a specific product or service, or within a particular market segment, may signify trouble in a specific sector. By detecting this trend before it escalates, finance and sales teams can investigate further and devise strategies to mitigate potential risks and ensure continued profitability.

• Sales inactivity: Real-time monitoring enables sales management to identify underperforming team members without having to wait until the end of the month. This timely insight allows managers to take immediate action to rectify the situation, ensuring optimal sales productivity for the period.

Staying a Step Ahead with On-Demand Cash View

In today's fast-paced business environment, relying solely on month-end cash flow statements is insufficient. By leveraging an on-demand cash view, businesses can stay ahead of both positive and negative developments, enabling proactive decision-making.

Tesorio offers a powerful Cash Flow Performance solution to help you unlock the potential of real-time cash visibility. Discover how Tesorio can empower your finance team to drive growth, seize opportunities, and manage risk effectively. Stay informed and stay ahead.