FinStream: A Guide to Liquidity Management

Liquidity management is the process of optimising a company’s cash position. It involves tracking, forecasting, and managing the movement of cash throughout an organisation to ensure funds are available when and where they are needed, while maximising returns on excess cash.

It’s about striking the perfect balance to ensure the business can meet all its short-term financial obligations without stress. Businesses cannot hold too much idle cash (which loses value), nor can they hold too little (which leads to missed payments or opportunities).

Why is liquidity management critical for CFOs and treasury teams?

Many organisations still struggle to build a consolidated view of their cash. Fragmented systems increase vulnerability. Inefficient fund utilisation and cash pooling lead to idle cash. Apart from this, several other reasons make liquidity management an important component for CFOs and treasury teams:

• A business with sufficient liquidity means that it has enough immediate cash to cover operational expenses, debt payments, and short-term obligations.
• Teams can proactively monitor cash flow, protect against fraud, reduce exposure to currency fluctuations and avoid unnecessary borrowing or overdraft fees.
• With effective liquidity management, leaders gain real-time cash visibility across all accounts, which enables them to make strategic decisions.
• With cash pooling and centralisation, the available capital is utilised efficiently to reduce interest expenses and maximise returns.
• Finance leaders look forward to protecting their cash from fraud, risks and revenue leakage.

Without a centralised system, treasurers are forced to operate in the dark, leading to higher risks, missed investment opportunities, and increased costs.

Rising Need for Liquidity Management Solution

CFOs are no longer in favour of accepting high operational costs, idle cash, a reactive financial posture, fragmented banking, and manual reconciliation. All that they look forward to is a smart automated solution where all the siloed data is brought together and unified into a single account.

A liquidity management solution provides treasury teams with a centralised system for data control along with seamless ERP and banking integration, reduced risks, regulatory compliance and security.

FinStream, a known treasury management system, centralises cash management for conglomerates, providing CFOs and finance controllers with an unparalleled understanding of the global cash position in real-time. It automates workflows, provides multi-currency management and global transaction support and immediate insights.

FinStream as a Treasury Single Account

FinStream automates key treasury functions through advanced technology. It helps reduce errors in fund transfers, mismanagement of surplus funds, or delays in accessing liquidity. Let’s understand the basic functionalities of the platform:

• Centralised Account Linking & Hierarchy:
  • FinStream’s core TSA system features an “N-level” hierarchy. It links physical bank accounts from multiple banks and entities into one unified platform, providing a consolidated view of all cash.
  • Balances and transactions roll up into parent dashboards, offering CFOs an unparalleled understanding of the global cash position in real time.
• Intelligent Cash Automation:
  • The platform utilises automated cash sweeping and pooling to intelligently consolidate funds, optimise working capital, and maximise returns on surplus cash.
  • Additionally, FinStream automates payment initiation, bank reconciliation, report generation, and supports Payments on Behalf of (POBO) workflows.
• Seamless Integration and Global Reach:
  • FinStream offers plug-and-play Seamless ERP & Banking Integration via an API-driven framework.
  • This ensures a smooth treasury workflow, simplifies multi-currency management, and supports a wide array of payment methods (ACH, RTGS, SWIFT, etc.) for seamless local and cross-border transactions.
• Robust Control & Risk Mitigation:
  • To ensure security and compliance, the system features automated approval and authorisation workflows with multi-level rules based on user roles and amount thresholds.
  • This automation reduces operational risks, such as errors in fund transfers or delays in accessing liquidity, while enforcing robust financial controls.

How FinStream Guides Group CFOs and Treasury Heads for Liquidity Management?

FinStream’s true value lies in its ability to empower financial leaders with the features they need to succeed in a dynamic environment. The liquidity management solution allows financial leaders to:

• Consolidate all accounts across multiple banks and entities into a single, unified dashboard to manage diverse banking relationships efficiently.
• Reduce manual processing by automating treasury functions, leading to increased operational efficiency.
• Identify and mitigate financial risks, such as Foreign Exchange (FX) and Interest Rate fluctuations, using integrated liquidity risk management tools.
• Gain a holistic view of financial health through real-time cash visibility, advanced analytics, and smart reporting to drive data-driven profitability.
• Adhere to regulatory requirements and enhance financial security by providing real-time transaction monitoring.
• Gain improved control over intercompany transactions, reduce idle cash and maximise returns.

When Should Businesses Opt for Single Account Treasury Management (SATM)?

While the benefits of a TSA are universal, the need for FinStream becomes acute when a business has:

1. Multiple Legal Entities: A SATM consolidates cash across dozens of subsidiaries, eliminating intercompany debt and debt costs.
2. High Intercompany Volume: As a platform, Finstream automates all intercompany settlement processes, removing manual reconciliations and reducing complexity.
3. Complex International Operations: It simplifies multi-currency management, foreign exchange (FX) exposure, and regulatory compliance across different jurisdictions.
4. The Need for Centralised Control: This is required when the executive team needs to maintain a tight fiscal discipline and oversight across decentralised business units.

Liquidity Management Solution is the Ultimate Need for CFOs

Today, the financial world highly demands that liquidity management be an essential part of financial operations. CFOs today are often compelled to update their cash flow and liquidity plans every week, and sometimes even daily. This creates the need for a platform that is built with hyper-speed and precision.

FinStream is a dedicated financial operating system that ensures business resilience and continuity. By unifying data and automating processes, it provides the control and visibility required to turn cash data into a competitive advantage.

Group CFOs often consider it a strategic investment, so the finance team is prepared not just for the next crisis, but for the next opportunity. FinStream acts as a guide to help you anticipate cash flows, analyse debt, manage commodity risk, and optimise working capital programs.

Want to learn more about the liquidity management solution? Check out for more details on our website.

Frequently Asked Questions