Why working capital matters more than ever
This article is a contribution from our content partner, Kyriba Economic uncertainty. Supply chain disruptions. Rising inflation. Shifting consumer demands. Today’s financial landscape is anything but predictable. For businesses, these challenges are more than just economic headlines—they’re daily hurdles that require strategic planning and agility. Amid this turbulence, one factor has become a lifeline for businesses trying to stay resilient and seize growth opportunities: working capital. By effectively managing and optimizing working capital, companies can maintain liquidity, operate efficiently, and position themselves for long-term success. This blog will explore what makes working capital so critical in today’s economy, break down its components, and offer actionable strategies to optimize it. Why working capital is a game-changer in today’s economy Working capital is no longer just a financial metric on a balance sheet. It’s a strategic tool that helps businesses adapt to disruption, capitalize on opportunities, and ensure operational stability. Today, liquidity is the new currency of resilience. Here’s why working capital plays a pivotal role: Breaking Down the Components of Working Capital Working capital management revolves around optimizing the Cash Conversion Cycle (CCC)—a foundational metric that measures how quickly a company can turn its investments in inventory and resources into cash flow from sales. The three levers of the CCC are: Optimizing these three components is challenging, especially in a globalized landscape with multiple ERPs, business units, and jurisdictions at play. Advanced analytics and digital financial platforms are essential for real-time visibility, scenario planning, and agility. Real-world example: Bray International The scale of the challenge is clear: in our recent CFO survey, more than 70% of finance leaders across key global markets, including the US, UK, Japan, and France, expressed concern about the impact of supply chain issues on their organizations’ financial health and outlook. In France, that figure reached 80%. The message is clear: volatility is not a passing phase, but a defining feature of today’s business landscape. To see how optimizing working capital can drive resilience, take a lesson from Bray International. When tariffs disrupted trade relations in the U.S., Bray could have reacted defensively. Instead, they took proactive measures like diversifying manufacturing locations and leveraging liquidity for strategic investments. By adopting data-driven decision-making and scenario planning, they managed to not only mitigate risks but also turn uncertainty into competitive advantage. Their agility underscores the importance of working capital in dynamic environments. Strategies for Optimizing Working Capital Managing working capital effectively is a strategic imperative. Here are actionable steps your business can take today: Overcoming challenges in working capital management While working capital optimization is essential, businesses face unique challenges that make it difficult to maintain. Here are some common hurdles: Rising inflation Higher costs for raw materials, labor, and logistics directly impact purchasing power. Businesses must adopt efficient procurement processes and limit cost variability. Supply chain disruptions Extended lead times and increased inventory holding costs have made efficient inventory management more critical than ever. Strategies like nearshoring and alternative supplier sourcing can offer relief. Stricter credit terms Suppliers tightening credit terms puts additional financial pressure on businesses. Companies need to negotiate better payment terms and explore financing options to reduce strain. Turning uncertainty onto opportunity Today’s volatile conditions have raised the stakes for working capital management. While the challenges may seem daunting, businesses that view uncertainty as an opportunity for strategic growth can thrive where others retreat. By focusing on receivables, inventory, and payables, and leveraging technology and strategic insights, businesses can free up cash, reduce costs, and position themselves for long-term success. From financial flexibility to strategic advantage Working capital is no longer just a financial metric. It’s a lifeline for businesses navigating modern volatility and an enabler of strategic growth. Companies that treat it as an enterprise-wide priority will emerge stronger, more competitive, and better equipped to seize the opportunities hidden within disruption. Now’s the time to reimagine how your organization manages its cash flow. With proactive strategies and the right tools, you can transform working capital from a routine financial consideration to a strategic lever for success. Read more from Kyriba Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
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Citi & Coinbase: A Turning Point for Digital Payments in Treasury
From Treasury Masterminds When Citi announced on 28 October 2025 that it would partner with Coinbase to offer “digital-asset payment solutions” to institutional clients, it signalled something bigger than a single bank-exchange collaboration. It marked another step in the gradual convergence between traditional finance and the digital-asset world — and a moment treasury professionals can’t afford to ignore. According to Reuters, the partnership will initially allow Citi’s U.S. institutional clients to move fiat funds through Coinbase’s infrastructure and explore conversion into stablecoins — digital tokens such as USDC or EURC, designed to maintain a stable value and backed by traditional assets. Citi has also hinted that the service could expand globally. For corporate treasurers, this development is less about crypto speculation and more about infrastructure modernisation. It opens the door to faster cross-border payments, new liquidity options, and more efficient settlement processes that might one day rival today’s SWIFT-based networks. Lorena Pérez Sandroni, Treasury Masterminds board member, added: “Citi partnering with Coinbase is a signal. The financial system is shifting, and global banks are positioning for a new payment infrastructure where speed, transparency, and programmability are no longer ‘nice to have’ — they’re expected. This isn’t about betting on crypto; it’s about modernising the rails that money moves on.” The Bigger Trend: From Parallel Systems to Integration For years, banks and digital-asset platforms operated in separate worlds — traditional finance on one side, crypto exchanges on the other. That separation is shrinking fast. We’ve already seen: Now, with Citi and Coinbase teaming up, the message is clear: banks are no longer just observing digital assets; they’re integrating them. This matters for treasury because the core promise of digital-asset rails aligns with what treasurers constantly seek — speed, transparency, cost efficiency, and control. Lorena also noted: “If cross-border transactions can settle in minutes, 24/7, with full traceability, then waiting days through legacy, expensive correspondent networks starts to look outdated — and questionable.” Opportunities for Treasurers 1. Faster Cross-Border Settlement: Moving funds between subsidiaries or paying suppliers overseas can take days through traditional channels. Using stablecoins or blockchain rails could reduce this to minutes — potentially improving liquidity visibility and reducing working-capital buffers. 2. Extended Payment Hours: Unlike conventional banking systems bound by cut-off times, blockchain-based payments operate 24/7. This could reshape treasury’s approach to liquidity windows, especially for businesses operating across time zones. 3. Enhanced Transparency: Blockchain-enabled transactions are traceable and timestamped, offering real-time confirmation. For treasurers, that means fewer reconciliation delays and faster confirmation of fund flows. 4. Lower Transaction Costs: Depending on volume and jurisdiction, bypassing intermediary banks could reduce correspondent fees and FX spreads — though this will depend heavily on regulatory acceptance and liquidity depth in digital markets. Lorena noted: “Corporates are demanding better payment efficiency — faster liquidity, lower settlement costs, and more real-time control. Blockchain-based stablecoin rails can deliver exactly that.” Risks & Governance Considerations However, every opportunity brings its own complexity. Regulation and Compliance: The legal framework around stablecoins and digital-asset payments is still evolving. Treasurers must ensure compliance with AML/KYC standards, sanctions screening, and data-protection requirements when onboarding digital-asset service providers. Audit and Accounting: Under IFRS and GAAP, stablecoins aren’t yet treated as cash or cash equivalents, which complicates balance-sheet classification. Accounting teams will need clear guidance on valuation, reporting, and impairment. Counterparty Risk: Even when working with a reputable exchange like Coinbase, treasury must evaluate the risk profile, custody arrangements, and service-level guarantees. Operational Risk: Integrating digital-asset payments introduces new workflows — key management, wallet security, and reconciliation logic — that differ from traditional bank accounts. Kortam Mohamed, Treasury Masterminds board member, adds “This is a promising step — like Ripple–GTreasury. But mainstream adoption depends on the backend. Banks and fintechs must seamlessly integrate stablecoins and blockchain with fiat systems and invest in training so treasury teams can manage wallets and blockchain workflows securely. Build trust through operational reliability and proactive education.” The Digital-Asset Readiness Framework for Treasury At Treasury Mastermind, we’ve seen growing curiosity among treasurers about how to prepare — not just if they should. Below is a practical self-assessment framework to evaluate your digital-asset readiness in five dimensions: Pillar Key Questions Why It Matters 1. Banking Relationships & Partners Are your core banks exploring digital-asset offerings? Are they regulated for stablecoin custody or blockchain settlement? Future-proofing relationships ensures access to next-generation payment rails without losing oversight. 2. System Integration (ERP / TMS / API) Can your treasury systems connect to digital-asset platforms through APIs? Is your data model flexible enough to handle new asset types? Seamless integration avoids “off-system” processes that create reconciliation risk. 3. Risk & Compliance Framework Does your policy cover digital-asset transactions, KYC, AML, and sanctions screening? Early policy alignment avoids governance gaps once pilot projects begin. 4. Accounting & Reporting Do finance and audit teams understand how to classify stablecoins under IFRS/GAAP? Accounting clarity prevents reporting delays and misstatements. 5. Capability & Knowledge Does your team understand wallet security, private keys, and digital custody? Treasury talent must evolve alongside technology. Training and awareness are essential. Treasuries scoring low on these dimensions don’t need to jump in immediately — but they should start conversations, test internal processes, and engage with banks piloting these capabilities. Lorena noted: “Both corporates and banks must prepare the foundation. This isn’t about moving today — it’s about being ready when the market standard shifts: accounting, risk and compliance, treasury systems, and team capabilities.” A Measured but Inevitable Shift The Citi–Coinbase partnership doesn’t turn every treasurer into a blockchain enthusiast overnight. But it’s another sign that digital-asset infrastructure is moving from the edge to the core of institutional finance. For now, the most pragmatic approach is to observe, learn, and prepare. Map where digital payments could add value, ensure your governance can accommodate them, and engage your banking partners about their roadmaps. Kortam added: “Only a dual focus on technological integration and proactive education will pave the way for broader acceptance of stablecoins as a viable, efficient tool in modern treasury…
Next-Gen SaaS Treasury-Management Platforms: Key Features & Benefits for SMBs (2025 Guide)
This article is a contribution from our partner, TreasuryView Outgrowing spreadsheets for loan management? When your debt portfolio crosses the €10 m-€500 m mark, Excel starts to wobble. Miss one rate reset, mis-type one formula, or lose one key colleague, and the month-end can spiral into days of rework. A modern, cloud-based treasury platform stops that Spreadsheet spiral before it starts. What Makes a “Next-Generation”, Modern Treasury Management System? A true next-gen TMS is cloud-native, self-service, and built for lean finance teams -not just global corporates. But also for teams outgrowing Excell You log in from any browser, upload your current loan file, and start seeing automated schedules and dashboards the same day. No servers, no six-month projects, no binding licence, no high costs. What features do next-generation, modern treasury platforms offer? Today’s treasury tools are finally catching up with what busy SMB finance teams really need: visibility, control and fewer spreadsheets. A next-gen platform isn’t just a digital version of what you had -it should do the work for you, automate daily-weekly-montly processes and ease your understanding of the loan situations in one, easy dashboard. Not numerous bank contracts. Key Features to Expect in Modern Treasury Tools What are the advantages of modern, SaaS-based treasury management platforms vs legacy treasury systems? Unlike old-school on-premise systems, SaaS treasury tools are faster to start, easier to maintain, and built for the kind of agile teams running finance in growth companies. Why SMBs are switching to SaaS platforms? Comparing modern TMS vs Legacy TMS Modern TMS -TreasuryView Treasury Management Software (TMS) Implementation Immediate, cancel anytime Complex, Long-term contract User All level Industry experts Annual Cost Low High Tech Approach Cloud, Self-service IT- project, on-prem installation Interfaces Open-API Open API Managed Services None Expert support Sophistication Basic/Intermediate Advanced Market Data availability Automatically integrated Integration required Automation Personal and enterprise automation Enterprise automation Risk Simulations Built-in Typically third-party 5 Fast Wins SMB Treasurers Cite SMB Treasurers Love SaaS Deployment -Here’s Why Benefit How it Helps You Lower IT burden & faster ROI Vendor hosts, patches and upgrades – capital expense becomes a predictable subscription. Anywhere, any-device cloud access Browser UI lets finance, auditors and advisors log in securely from the office, home or airport. Elastic scalability Add entities, currencies or API calls without new hardware; capacity auto-scales at quarter-end peaks. Bank-grade security & compliance SOC 2 / ISO 27001 controls and EU data residency often exceed in-house defences. Weeks-not-months implementation Pre-built connectors and zero on-prem installs get you live quickly. Affordable for SMBs Subscription based price (250€/Month), cancel anytime and try out for free. Easy to implement in self service No IT involvment or implementation vost What SMB finance leaders should do next? Modern treasury management tools aren’t just for the Fortune 500 anymore. If your team is juggling multiple loans, FX deals or intercompany transactions in spreadsheets, a SaaS platform like TreasuryView can save time, improve clarity, and reduce risk- without needing IT or a six-figure budget. So: Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
The U.S. Government Shutdown: What It Means for Corporate Treasury? With Real-Life Examples
From Treasury Masterminds When Washington grinds to a halt, the consequences ripple far beyond politics. For treasurers, a U.S. government shutdown touches the very systems that keep cash flowing — from federal payments to short-term funding markets. Cash flow jitters and market liquidity Each day the government stays closed, agencies delay payments to suppliers and contractors. The U.S. Treasury has warned that the shutdown is “starting to affect the real economy.” Estimates put the drag in the billions per week as federal activity slows and vendor payments back up. For companies doing business with the public sector, that means slower inflows and tighter liquidity; for others, reduced public spending can weaken downstream demand and pressure working-capital cycles. FedNieuwsNet Treasury yields and investment portfolios Historically, longer-dated U.S. Treasury yields tend to edge lower during shutdowns as investors seek safety (the effect is usually modest). In this episode, the long end has again drifted down — the 30-year recently touched its lowest level since April — while shorter tenors can be choppier around funding dates. For treasurers managing liquidity portfolios, keep an eye on curve shape and the balance between short-term placements and duration. Debevoise Operational and tax disruptions With a large portion of the IRS furloughed, refunds and audit processes are slow, complicating cash-flow timing for corporates expecting repayments or clearances. SEC filing deadlines still apply (EDGAR remains open), but staff review, comment letters, and many interpretive functions are curtailed — a planning issue for capital-markets activity and disclosure timetables. CBIZ+2SEC+2 What companies are saying right now (hard evidence) These disclosures matter because they translate headlines into concrete treasury levers: draw/roll CP, re-cut outlooks, slow capex/program ramps, and tighten operating costs to defend liquidity. Confidence and communication Uncertainty erodes confidence faster than any macro indicator. Internally, treasurers who can explain liquidity buffers, committed lines, and plausible downside cases help leadership stay calm. Externally, maintain active dialogue with banks and investors; show where you have flexibility (working-capital programs, issuance windows, investment policy) if government-related cash receipts slip. The Mastermind view Shutdowns rarely trigger full-blown crises, but they do stress-test fundamentals: Those with solid forecasting, diversified funding, and active bank dialogue will feel the tremors — not the quake. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Driving Blind: Managing Finances Through the Rear-View Mirror
This article is written by HedgeFlows Picture this: You’re driving down a busy highway, but instead of looking ahead at the road, you’re making all your steering decisions based solely on what you can see in your rear-view mirror. Sounds terrifying, right? Yet this is exactly how most small and medium enterprises (SMEs) manage their business finances. The Great Divide: Compliance vs. Planning In large corporations, there’s typically a clear organisational split that addresses both aspects of financial management: This division makes sense—both functions require different skill sets, mindsets, and priorities. Compliance is about accuracy, adherence to standards, and meeting deadlines. Planning is about analysis, strategic thinking, and managing uncertainty. The SME Reality: Stuck in Compliance Mode For most smaller businesses, the finance function is heavily weighted toward compliance activities. This isn’t necessarily by choice—it’s often driven by necessity: Why compliance dominates: The people hired to handle these functions naturally develop expertise in compliance. They understand the value of accurate bookkeeping, timely tax submissions, and proper audit trails. They know what goes wrong when these fundamentals aren’t managed correctly. The Growth Challenge: When Looking Back Isn’t Enough As businesses scale, however, the need for forward-looking financial management becomes critical. This is where many SMEs hit a wall. The typical evolution: Where the System Breaks Down Even when businesses recognise the need for better financial planning, execution often falls short. Here’s why: Competing priorities plague finance teams: Meanwhile, critical forward-looking activities get consistently deprioritized: It’s human nature—when you’re overwhelmed, you default to what you know and what has immediate consequences. The Hidden Cost of Financial Myopia Operating primarily in “rear-view mirror mode” creates severe, measurable business impacts: Missed opportunities that directly hit the bottom line: Financial risks that create cash flow volatility: Strategic limitations that compound over time: The Modern Solution: Integration and Expertise The good news? Today’s technology and advisory landscape offer practical solutions for SMEs ready to balance their rear-view and forward-looking capabilities. Leverage modern treasury tools: Partner with specialized advisors: Build hybrid capabilities: The Path Forward: Balanced Financial Vision The most successful growing businesses don’t choose between compliance and planning—they excel at both. This requires: Cultural shift: Recognising that planning activities are as critical as compliance tasks Process integration: Making forward-looking analysis a standard part of financial operations Technology adoption: Implementing tools that make planning as straightforward as reporting Skill development: Building teams that can handle both backward and forward-looking responsibilities Taking Action If your business is stuck in rear-view mirror mode, consider these immediate steps: Remember, effective financial management requires both clear vision of where you’ve been and where you’re going. In today’s fast-moving business environment, companies that only look backward will find themselves falling behind competitors who have learned to drive with their eyes on the road ahead. The question isn’t whether you can afford to invest in better financial planning—it’s whether you can afford not to. After all, if you’re always looking backward, who’s driving your business forward? Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Ripple Acquires GTreasury: What It Means for Corporate Treasury
From Treasury Mastertminds When Ripple announced its $1 billion acquisition of GTreasury, reactions across the treasury community ranged from curiosity to cautious optimism. For some, it marks a watershed moment — the convergence of digital-asset infrastructure and traditional treasury management. For others, it’s a long-term experiment whose practical impact will take years to unfold. Either way, it’s a move that deserves attention. The Big Picture Ripple is known for its blockchain-based payment and liquidity network. GTreasury, by contrast, is one of the most established Treasury Management System (TMS) providers, supporting corporates with forecasting, payments, connectivity, and compliance. By combining forces, Ripple positions itself not just as a payments player, but as a provider of enterprise liquidity infrastructure — bringing blockchain into the mainstream of corporate finance. As Jessica Oku, Treasury Mastermind board member, put it: “This isn’t just about a fintech acquisition but a structural shift in how corporates may manage cash, liquidity, and digital assets.Ripple’s $1Bn buy of GTreasury puts it squarely in the game of thrones — sorry — treasury operations.” From Excitement to Realism When the news first broke, many treasurers — including Patrick Kunz, founder of Treasury Masterminds — reacted with excitement at the possibilities. “When I first heard the news I thought: ‘wow this is cool,’ and started to imagine the end state — a TMS fully integrated into blockchain or stablecoins for almost instant global payments in any currency.” But, as Patrick reflects, the reality check followed quickly: “Thinking about it longer, I realized this end state will take years to achieve — if it even will. And is that really Ripple’s goal? I had more questions than answers.” That mix of curiosity and caution captures how many in the treasury world feel. As Jessica noted, the deal “signals that Ripple is positioning itself not just as a payments enabler, but as a full-stack infrastructure provider for liquidity and capital.” Patrick adds that regardless of how quickly integration happens, the move is already shaking up the TMS market: “It brings a bit of noise and challenges the status quo — which is always good in a competitive environment. It also makes treasurers think about the possibilities of using crypto or blockchain in treasury. Which, in my opinion, is not a matter of if but when.” The Promise: Smarter, Faster Liquidity Ripple and GTreasury’s shared ambition is clear — to enable faster, smarter liquidity management by merging digital-asset rails with deep treasury functionality. Jessica outlines the potential: “Combine GTreasury’s cash forecasting, FX, and compliance logic with Ripple’s blockchain infrastructure, and you get a platform that could move value instantly across fiat, stablecoins, and tokenized deposits.” Tanya Kohen adds that tokenized deposits may be the real breakthrough: “They open the possibility of using on-chain benefits without leaving fiat currency. You can embed logic, automate liquidity, reconcile in real time, and move cash dynamically instead of letting it sit idle.” For treasurers, this could mean a shorter cash cycle, automated movement of funds, and programmable payments — if, and only if, regulatory and operational foundations catch up. The Caution: Real-Time Comes with Real Risks Bojan Belejkovski offers a grounded counterpoint: “Treasurers aren’t losing money because payments take 30 minutes instead of 3 seconds. Their value lies in liquidity forecasting, risk mitigation, and visibility. Real-time only matters if it brings measurable improvements — reduced FX risk, freed working capital, or better yields.” He warns that 24/7 liquidity isn’t free of cost: “It means continuous monitoring, more automation, tighter risk controls, and possible regulatory friction. Many treasurers actually prefer predictable batch cycles that align with reporting and governance windows.” In short, blockchain brings potential efficiencies — but also complexity. Pros and Cons at a Glance Potential Benefits Key Challenges Broader access to liquidity and markets via blockchain rails Integration complexity between legacy TMS/ERP and on-chain systems Faster settlement and real-time visibility Continuous monitoring, audit, and risk-control overhead Ability to earn on idle balances and unlock trapped cash Regulatory uncertainty and compliance requirements Opportunity to explore tokenized deposits and programmable cash Conservative adoption curve — treasurers value reliability Strategic synergy: Ripple’s network meets GTreasury’s enterprise reach Execution risk from merging different technologies and cultures What Comes Next In the short term, adoption will remain slow. Treasurers are pragmatic — they’ll wait for proven use cases, clear regulation, and seamless system integration. As Jessica notes, “Adoption won’t happen overnight. Treasuries are conservative. Integrating blockchain with compliance, risk, audit, and visibility will matter more.” In the medium term (2–5 years), we’ll likely see experimentation — Ripple bringing new liquidity tools to GTreasury clients, and other TMS vendors accelerating their own innovation agendas. Bojan foresees this evolution: “Treasurers will operate within increasingly intelligent, connected ecosystems — powered by AI-driven forecasting, API-linked liquidity, and modular TMS platforms that deliver end-to-end visibility.” And over the long term, as Tanya points out, tokenized deposits could bridge the gap between fiat and digital — giving treasurers programmable liquidity without leaving traditional banking infrastructure. Final Thoughts Ripple’s acquisition of GTreasury is bold — and possibly transformative. It’s not about making payments faster; it’s about redefining the infrastructure of corporate liquidity. It will challenge the status quo, force vendors to rethink their roadmaps, and push treasurers to imagine what digital liquidity could mean for their organizations. The big question isn’t whether treasurers will use blockchain or tokenized cash — it’s when, how, and through whom. And on that, as Patrick Kunz summed up: “Exciting times ahead — but we’re only at the beginning.” Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Working capital in service of shareholder value
This article is written by Embat Creating sustainable value over time depends on efficient management of financial resources, with optimising working capital as a critical element. It acts as a financial health indicator, measuring the organisation’s stability while directly supporting shareholder returns. Far from being just another finance KPI, working capital reflects operational discipline across the entire business and demands active engagement beyond the finance function. Linking daily operations to long-term strategy Working capital is fundamentally the difference between current assets (short-term resources) and current liabilities (short-term obligations). It represents the liquidity buffer available to meet near-term commitments, sometimes described as operating liquidity or a financial cushion. It serves as the essential link between daily operational management and the company’s medium- and long-term financial strategy. By providing a clear measure of operational solvency, it ensures that the business can meet its obligations on time, maintaining stability even as priorities evolve. Effective working capital management is about having the right liquidity levels, tailored to the specific operating model and the stage of the business cycle. This helps reduce reliance on external borrowing, improves return on invested capital, and directly supports shareholder value. Additionally, it acts as a shock absorber for unforeseen disruptions or internal issues, such as production line stoppages in manufacturing. The goal is to achieve balance: avoiding both liquidity shortages that create financial stress in the short term, and excess idle cash that cannot be deployed to generate additional value. Poor working capital management can effectively paralyse the core of any company, even one with strong paper profitability. Turning efficiency into cash flow Often, companies can unlock more value through effective working capital management than through simply expanding operating margins. It is about improving the conversion of assets into cash while managing liabilities with precision. Optimising working capital creates a virtuous cycle over time. By shortening the cash conversion cycle, businesses can accelerate the return on investments and improve overall profitability. This process directly increases free cash flow, which becomes a powerful lever for corporate strategy. Companies can choose to reinvest in new projects, reduce debt, or return value to shareholders through dividends and share buybacks. It also builds the capacity to adapt to market changes quickly, funding growth opportunities without compromising financial stability. A strategic priority for the entire organisation Improving working capital should never be viewed as a narrow technical exercise owned solely by the finance department. It is a strategic priority that demands collaboration across all business functions. Operations, procurement, sales, and finance must work in concert to manage payment terms, inventory levels, and receivables in a way that aligns with the company’s overall strategy and risk appetite. Ultimately, cash remains the central measure of a company’s resilience and opportunity. Optimising working capital is about reliably turning profit into cash, and managing that cash to deliver sustainable value for shareholders over time. It is the practice of converting earnings into liquidity—and liquidity into lasting strategic advantage. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.
EuroFinance 2025: AI Takes the Stage, but Core Treasury Still Reigns
From Treasury Mastertminds This year’s EuroFinance conference was buzzing with energy — and Treasury Masterminds was there in full force as an official media partner, with nine board members attending sessions, moderating panels, and walking the floor. If one theme stood out above all, it was clear: AI has moved from curiosity to conversation — and now to early experimentation. “I clearly see strong interest in AI,” said Patrick Kunz, Founder of Treasury Masterminds. “My sessions on this topic were fully booked. When polling the audience, there was a noticeable shift — more treasurers are experimenting or running first use cases. Last year it was mostly about interest.” But while AI dominated headlines and hallway chatter, the classic topics of treasury weren’t going anywhere. “That doesn’t mean that the standard treasury topics were less in demand,” Patrick added. “Cash optimisation, working capital management, and yield enhancement for cash investments remain high on the agenda. The roundtable knowledge-sharing sessions were particularly popular — treasurers still love learning from each other.” AI Everywhere – But Still Early Days For many first-time attendees, the scale and scope of EuroFinance were eye-opening. “I was amazed by the number of banks and fintechs, especially smaller ones focusing on AI and innovation,” shared Kortam Mohammed. “All the sessions were highly relevant — from working capital to digital assets and AI adoption.” Kortam observed a growing number of practical AI solutions already in the market — particularly around cash flow forecasting, working capital optimisation, and digital payment automation. But he also noted two key challenges holding treasurers back: That tension — between the potential of new tech and the reality of operational focus — seemed to echo across the event. AI, Upskilling, and the Future of Treasury Roles AI wasn’t just about technology — it was about people. “AI was mentioned in nearly every session — even by José Manuel Barroso in his closing remarks,” said Benjamin Defays. “Many treasurers were uneasy about what it means for their roles, but the message was clear: AI will replace tasks, not entire jobs.” Benjamin’s takeaway was that upskilling is now non-negotiable. “It’s time for treasurers to look at their work and identify where they add value. We shouldn’t be ashamed to say we used AI to get something done — we should foster this mindset in our teams. Learn the AI language, and teach it internally.” Benjamin also highlighted growing interest in Fixed Term Funds (FTFs) — an investment approach offering greater control over counterparty risk — and virtual accounts, which continue to evolve but still lack clearly defined corporate use cases. Tokenised MMFs Make a Comeback “Adding to those comments, I was curious to see the return of tokenised money market funds,” noted Nicholas Franck. “There’s no sign of corporate adoption yet — mainly financial institutions — but their reappearance suggests the market is maturing.” This re-emergence fits into a broader trend of digitalisation of liquidity and investments, where treasurers are increasingly looking for secure, transparent, and efficient ways to deploy excess cash. 🎙️ Live from EuroFinance: The Treasury Masterminds Podcast One of the highlights for our community this year was hosting a LIVE podcast recording right from the EuroFinance venue, in collaboration with Nomentia. The discussion explored the hottest conference themes — from treasury digitalisation and TMS innovation to how AI is reshaping the way treasurers work and collaborate. “Conversations like these capture the pulse of treasury,” said Patrick. “It’s exactly what Treasury Masterminds is about — connecting experts, sharing real stories, and turning ideas into action.” 🎧 Listen to the full live recording here:👉 Treasury Masterminds LIVE with Nomentia at EuroFinance 2025 Looking Ahead: From Awareness to Application EuroFinance 2025 confirmed that treasury innovation is no longer a niche side conversation — it’s part of every treasurer’s strategic agenda.But as our board’s observations show, the gap between awareness and application remains wide. Bridging that gap is where communities like Treasury Masterminds play a role — helping treasurers share experiences, experiment safely, and translate technology into real impact. Were you at EuroFinance 2025? We’d love to hear your takeaways — especially your first-hand experiences with AI, digital investments, or other treasury innovations. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
7 Tricks of the Trade to Enhance Your Cash Reconciliation Process
This article is written by Treasury4 Treasury professionals know that cash reconciliation is an essential part of cash flow management for any organization. It shows the company’s cash position, identifies errors or fraud, and allows management to make informed, strategic decisions based on the most up-to-date information. Unfortunately, the cash reconciliation process comes with several common hurdles that CFOs and treasurers must constantly deal with. And if you’re not careful, these issues can quickly snowball into larger financial risks. Today, we’ll share several actionable tips to improve your cash reconciliation process. First, let’s look at the most common pain points of the cash reconciliation process—and how they can create even larger problems. Key Challenges in Cash Reconciliation Cash reconciliation is the process of making sure your company’s financial records match up with actual bank balances. And it can come with several challenges, including: The good news is that there are strategies to overcome these challenges. Let’s look at some of the most effective ones. 1. Use Automation Automating your cash reconciliation is one of the most effective ways to optimize the process. It minimizes the manual workload, reduces errors, and accelerates the entire workflow. Here’s how automation can transform your process: Treasury4’s automation features provide near real-time visibility into your cash position, ensuring better accuracy and freeing up your finance team to focus on more important duties. Scalability is another key feature of Treasury4. As your business grows, so do your financial transactions. With a scalable solution, your reconciliation process evolves effortlessly—and automatically—alongside your operations. 2. Create Clear Guidelines Inconsistent practices across departments can lead to confusion and errors in your reconciliation process. Consider creating a step-by-step guide that clearly defines the reconciliation process. Include which systems to use, how to verify transactions, and how to resolve discrepancies. Make sure this guide is used by any team member involved in the process. Treasury4 can help standardize your cash reconciliation process by enabling custom workflows so that everyone follows the same procedures. Having a structured, repeatable process ensures consistency and reduces the risk of errors or discrepancies. 3. Use Templates to Ensure Nothing Is Overlooked Using standardized templates for various parts of the reconciliation process ensures every step is being carried out properly. Types of templates to consider: Treasury4’s customizable templates allow you to create tailored solutions for your organization’s unique needs, ensuring every task is completed to satisfaction. 4. Move to Daily or Weekly Reconciliations Monthly reconciliations can create a backlog of discrepancies that pile up over time. By moving to daily or weekly reconciliations, you can catch errors early and resolve them before they grow into larger issues. Keeping your accounts reconciled more often reduces stress (and bottlenecking) at the end of the month. Treasury4’s user-friendly interface improves the reconciliation process, making it easy to manage as often as you want. 5. Monitor Key Accounts Closely Not all accounts require the same level of attention. Make sure you give particular focus to accounts with high transaction volumes or frequent fluctuations. This way, you can make sure they’re reconciled accurately and efficiently. Treasury4 offers advanced reporting capabilities that allow you to set up custom alerts and track key accounts in real time. By watching these accounts closely, you can find issues before they escalate. Analyze Discrepancies and Trends to Refine Your Process Discrepancies will inevitably arise, but tracking and analyzing these issues over time can help you spot patterns, identify root causes, and implement preventive measures. Here are some best practices for analyzing discrepancies: With Treasury4’s detailed, customizable reporting features, finance teams can track discrepancies, show recurring issues, and gain valuable insights into their root causes. 6. Analyze Discrepancies and Trends to Refine Your Process Discrepancies will inevitably arise, but tracking and analyzing these issues over time can help you spot patterns, identify root causes, and implement preventive measures. Here are some best practices for analyzing discrepancies: With Treasury4’s detailed, customizable reporting features, finance teams can track discrepancies, show recurring issues, and gain valuable insights into their root causes. 7. Use Accurate Documentation to Simplify Audits Documenting every step of the reconciliation process is crucial—both for day-to-day operations and to be prepared for audits. For one thing, it enhances transparency and allows stakeholders to feel confident in the data. For another, properly documenting discrepancies—including their root causes and how they were resolved—makes audits more efficient and ensures compliance with regulatory requirements. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.