Insight to All Things Currency and Treasury Management

For many companies, extracting data can be a difficult task.

While this can especially be an issue for corporates with multiple ERPs and a myriad of data sources, the fact is, even with one ERP instance, getting complete, accurate and instant data can be a real challenge.

With a multitude of deadlines, reports, analyses, and collaboration, one question typically remains the most prevalent— “Is being able to extract data in a better way than we’re doing it now (manually or with a process that yields incomplete data) a short-term must?”

In short— absolutely.

The dangers of the waiting game

The currency environment has been one of extreme volatility, with 9 current crises in 9 quarters, spread over 8 different currencies. And the truth is, none of us know for sure where it’s going to hit next. Although many companies may not have felt a direct hit after the latest currency storm— Brexit— volatility is, by definition, unpredictable.

For the vast majority of companies, eventually, there will be a surge that will effect even the lucky ones that have escaped unscathed up until now. The difference? Those corporates that are prepared will easily navigate through, with the tools in their arsenal to understand what-ifs, make strategic decisions, and produce instant, complete data to help quickly answer the questions their leadership team needs.

Even more, being able to quickly and easily extract corporate currency data has proven time and time again that it isn’t just a “nice-to-have.” It’s a way of ensuring that your strategies are solving the correct problems, helping you to accurately benchmark and depict a true picture of causes and effects.

In short? Those gambling without the right data extraction capabilities are putting themselves in a losing position— making it probable that when a crisis hits, their companies will stand to lose millions of dollars and the valuable time needed to protect their finances.

It’s not just about data. It’s about actionable data.

Even in situations that many companies deem less complicated— for example, multinationals that operate under a single instance of ERP— data can be difficult to pull and when it is pulled, incomplete.

Here at FiREapps, When we’re talking to potential clients, the sentiment of “we only know what we know” resonates loud and clear almost every time. And when we take a closer look? Even those that think their reporting is accurate are often surprised when they utilize an automated solution with deep-data analytic capabilities for the first time.

With multitudes of currency pairs, various entities, and a number of different countries, the problem isn’t always just getting data. It’s getting complete data that you can do something about.

Making the most of limited bandwidth.

When the goal is comprehensive, quality data when you need it, without the right technology, data extraction can be a time-intense process.

One example of this? Take into account that it’s often other departments or teams running the reports that Treasury practitioners need without an on-demand solution in place, and the process becomes even longer— dependent on a colleague’s schedule, on sifting through incomplete numbers, or on data that helps with benchmarking but not predictive or accurate “what-if” analysis.

Another example? What about a scenario where one company acquires another. The parent company ends up inheriting the exposures of the entity they’ve acquired and need to be able to know how that has effected exposures quickly— to strategize and protect the business. Especially in situations where things need to move quickly, having no time to comb through an inherited system, dig for data (of questionable accuracy) and guess at a new, comprehensive exposure total is the least ideal option. With the right technology, however, this could be solved quickly, with true data reporting and insight capabilities restored within a few clicks.

The bottom line? No one likes making decisions based on partial information— especially when only knowing part of the story has the potential to cost hours of human capital and millions of dollars. Having the right system for extracting complete and accurate data and reporting can help to prevent loss in both scenarios. And in a world where the corporate currency data you don’t know can hurt you, solid data extracting capabilities qualify as a must-have.