Insight to All Things Currency and Treasury Management

Currency volatility affects an organization in myriad ways. Certainly, it affects treasury. It also affects financial planning & analysis – potentially impacting revenues, cost of sales, and operating expenses. Solid currency data is the answer.

Yet often, FP&A teams can’t get the transaction-level currency detail they need to forecast accurately – whether they’re managing balance sheet or cash flow. In many cases, they don’t have visibility into those underlying currencies so they’re forced to plan with only a summary-level picture of the company’s reality. Yet if they’re not taking into account the currencies that will be translated in the process of consolidating the financial statements, then volatility will render any forecast inaccurate.

For 10 years, FiREapps has been pulling transaction-level detail out of corporate ERP systems, analyzing it, and serving it up on-demand to treasury teams to enable them to manage currency risk. We pioneered and have perfected the arduous task of automatically aggregating currency data from multiple ERP systems and leveraging it to provide actionable and reliable intelligence.

It has been a tremendously valuable service for our clients, because ERP systems are simply not designed for the kind of drill-down necessary to effectively manage currency risk. There are all kinds of obstacles that make getting accurate, complete, and timely data out of an ERP system really hard – not to mention making any sense of that data.

Those are obstacles we’ve navigated to build a currency analytics platform that gives treasury teams on-demand access to currency exposure data that they can confidently base decisions on. It’s that same knowledge base and deep expertise that we worked from as we built our new suite of currency analytics for financial planning and analysis professionals.

Much as FiREapps has cut analysis time from days to minutes for teams managing currency risk – yielding documented cost, risk, and time savings – now we’re applying the same logic to generate time and cost savings for financial planning and analysis professionals. FP&A teams will be able to more quickly and more easily perform constant-currency and scenario-based analyses. They’ll get on-demand, strategic insight into the currency composition of revenues and expenses, and they’ll have a single collaborative environment to work with the other members of the currency roundtable.

Learn more about how FiREapps currency analytics for FP&A can help you create and model your constant currency analysis and FX rate impact(s) to revenues and expenses, on-demand:

Visit our booth at AFP Denver

If you’ll be at the AFP 2015 conference, come by booth 2717 for a demo of our just-released currency analytics for FP&A.

FiREapps Analytcis For FPA

Plus – enhanced treasury solutions

In addition to the new suite of currency analytics for FP&A, the Winter Release also includes upgrades to our treasury solutions. Application-wide, we’ve upgraded the user interface; it’s now cleaner, and optimized for speed and analysis. And we’ve upgraded variance analytics. Beyond those, upgrades to our treasury solution primarily fall into three categories: enhanced solutions for balance sheet, enhanced solutions for cash flow, and new hedge performance analysis capability.

Enhanced solutions for balance sheet

  • Enhanced variance and trend analytics
  • New analytics for triaging the performance of balance sheet risk hedging programs

Enhanced solutions for cash flow

  • Extended support for increasingly sophisticated cash flow risk management programs
  • Configurable flow views (including multi-period cash flow view) – so you can look at your analysis the way you look at your business, and model your exposure how you model your business
  • Exposure forecast
  • Variance analytics
  • Policy-based decision support

New hedge performance analysis capability

  • Compare forecasted (expected) balance sheet exposures with the appropriate hedges to the actual results post-hedging
  • Identify causes of variance between expected results and actual results – broken out by variances due to: trade (rate) slippage; forward points; forecast error; and unexplained variance (which points you toward whatever’s left to investigate)
  • FX Gain/Loss analysis more powerful than ever before

At FiREapps, we continue to innovate our solutions in response to the needs we see in the marketplace. Managing the impact of currency volatility on the business is an evolving discipline, and will always be. We’re committed to being right there with our clients, evolving our solutions to help them manage the impact of currency on their business.