The impact of workflow optimisation
An example of workflow optimisation is the ability to accurately forecast cash and produce reports that can satisfy whether investor distributions can be made, new assets acquired with the cash held across multiple bank accounts and whether there is enough cash to pay invoices and maintain any bank covenants.
The ultimate aim is to make cash work for the investors and reduce the cost of funds. Any unutilised cash sitting in bank accounts is a cost of capital that could be optimised. To forecast accurate cash positions, there needs to be standardised data, complete budgets and accounting information, up-to-date balances for each bank account and a full view of future pay runs. This, of course, is complex enough but an international portfolio and in-year purchase orders that sit outside of budget can make things even harder. Identifying when cash is required is key to forecasting, and this is where workflow design and tools play a pivotal role.
Workflow design considerations include:
- How can we improve cash forecasting and utilisation?
- How can we continue to meet investor demands for more information?
- How can we drive costs down across the portfolio?
- How can we manage financial compliance more effectively?
- How can we reduce the strain of audits?
- How can we improve the way we value our assets?
- How do we ensure compliance and reduce the risk of fines or suspension?
- How do we improve financial control?
- How can we ensure we comply with banking covenants?
- How can we future proof our workflows?