Next-Generation Needs For Cash Management In Latin America

Fernando Lewis

How do you manage treasury decisions and projections in a volatile, highly regulated, international marketplace? For 3 out of 4 treasury executives in Latin America, complexity and volatility rank as the toughest challenges in cash management today. That’s one of many compelling assertions from a new survey, conducted by CFO Research and sponsored by SAP.

This summer, senior finance execs from around the world participated in this study on the future of cash management. However, a great deal can be learned by focusing only on response data from Latin American companies. Decision-makers from 14 industries across Latin America, from controllers to finance VPs, voiced their views on treasury-related topics and the future of work in the region. Questions covered various concerns in cash management, risk, and compliance. Illuminating insights also emerged from discussions of how treasury will affect strategy for Latin American firms in the near future. You will gain access to insights on all of these issues and much more when you download Next-Generation Needs For Cash Management.

Key findings about financial controls

Below are just a few of the key findings uncovered in this detailed study.

  • The past five years have been characterized by greater turbulence in the finance sector from both internal and external forces. Finance execs report that not only has it become more difficult to manage cash efficiently and effectively, but external regulations and legal requirements have skyrocketed. Cash, governing profits and taxation issues have greatly increased the time and effort demanded by the treasury function.
  • 70% of finance executives said the past five years have added to the complexity of their roles due to more legal entities, more complex product lines and selling behaviors, and more operating geographies. That complexity is most keenly felt in how difficult it has become to manage cash in the most profitable way.
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  • Over the next two years, Latin American treasury execs expect that changes to international regulations on taxation and profits will greatly increase the time and resources demanded by treasury functions like cash management.

Treasury solutions

Finding a simple solution to these complex problems is possible, but it will take new approaches to technology and financial control management. That’s another theme that emerged from the Latin American data: the greater the insight and control finance execs have, the more capable they have been at handling issues in managing cash, liquidity, and enterprise risk.

A majority of executives (51%) said the size and complexity of their companies made it difficult to establish a comprehensive, accurate view of their cash position. They weren’t able to adequately forecast outcomes across all groups and business units without a technological solution.

The right technology is indeed part of the answer. 54% said that pulling data from different information systems made it harder to establish an accurate view of the company’s finances. A full 71% predicted that over the next two years their business profiles will become even more complex due to market volatility.

The value of speed

The right technology should condense all this complexity into a clear options so managers can move quickly to seize opportunities or stop cost overruns. In particular, an in-memory database like SAP HANA can provide an enterprise with a tremendous speed advantage. The SAP HANA platform translates unstructured market data into clear strategic options while the competition is still trying to understand what happened.

That’s why treasury and financial risk management solutions from SAP have been gaining wider acceptance at businesses of all sizes in Latin America. These integrated financial reporting tools simplify the challenges associated with working capital, risk management and compliance.

More detailed financial data

CFOs and treasury managers can delve deeper into these topics by downloading the full report “Next-Generation Needs For Cash Management (Latin America)” on the SAP website. Visit the Finance Solutions hub to see for yourself how others are deploying simple finance solutions by SAP to control complexity and plan for a turbulent future.

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Fernando Lewis

About Fernando Lewis

Fernando Lewis is the COO of Cloud at SAP Latin America. He is responsible for driving Cloud Business in Latin América from strategy, people and execution perspective.