s the U.S. cautiously starts to emerge from the COVID-19 pandemic, corporate treasurers are preparing for a post-pandemic business climate. Many have successfully navigated the challenges of the past year by adopting new policies, accelerating technology adoption and keeping close tabs on liquidity. Now, they are taking those lessons and trying to build upon them.
Treasury Strategies, a division of Novantas, is pleased to present the 15th Annual State of the Treasury Profession, which takes the pulse of treasurers across a broad swath of U.S. companies. This report includes results from the survey conducted earlier this year and insights from more than 30 in-depth interviews with corporate treasurers. This report also includes actual responses from the executives whom we interviewed.
For more information on this survey, please contact Jeff Diorio (jeff_diorio@treasurystrategies.com) and Paul LaRock (paul_larock@treasurystrategies.com).
While we all hope that the worst of the pandemic is behind us, treasurers are still impacted by a slew of issues that affect their operations, liquidity and funding.
he importance of cash forecasting couldn’t be underestimated during the pandemic’s darkest days and it remains the top priority for corporate treasurers. Some have invested in automation tools that incorporate machine learning for better accuracy and are continuing to adopt new processes. That said, there may be less urgency for the daily cash forecasting that was so crucial in the beginning of the pandemic.
Liquidity and working capital management moved up in order of importance in the survey even as funding remains plentiful and interest rates are low.
Liquidity and working capital management moved up in order of importance in the survey even as funding remains plentiful and interest rates are low.
The need to enhance fraud and cybersecurity controls catapulted to the fifth spot for priorities, up from the 10th position in 2020. In some cases, there is growing concern that employees who are working from home may more easily fall victim to cyber attacks than if they were in an office environment.
| Rank 2021 | Rank 2020 | Rank 2019 | |
| Cash forecasting improvements | 1 | 1 | 2 |
| Liquidity or working capital management | 2 | 4 | 1 |
| Bank services optimization or RFP | 3 | 3 | 4 |
| Optimization or replacement of TMS | 4 | 11 | 9 |
| Enhance fraud/cybersecurity controls | 5 | 10 | 8 |
Support for acquisition/divestiture, LIBOR replacement, debt issuance, improvements of payment process
Source: 2021 State of the Treasury Profession Survey
Support for acquisition/divestiture, LIBOR replacement, debt issuance, improvements of payment process
Source: 2021 State of the Treasury Profession Survey
A NEW WORLD
reasurers moved quickly in the early days of the pandemic to keep the trains running. Many of these changes – from remote work to automated payments – are here for good.
We finally got away from wet signatures and are using DocuSign almost exclusively now.
There is a mandate to automate.
Our focus is on adapting to a remote work environment from a team development perspective.
We can get the best talent now because location isn’t a constraint.
reasurers expressed enthusiasm about the opportunities that await the treasury and finance functions, including favorable interest rates and new technologies that will improve efficiency.
It’s a good time to renew lines of credit. Rates are in your favor.
Technology is where all opportunities start.
It’s time to leverage new tools to automate payments and forecasting.
We still print too many checks.
hile there is certainly optimism in the air, treasurers remain worried about assorted risks that could arise. Many are still grappling with LIBOR’s replacement, there are growing fears of inflation and fraud/cybersecurity issues are an even greater risk. And while a remote workforce can create opportunities, there is also real concern about the impact that a decentralized workforce can have on team development, advancement and corporate culture.
We are social animals. Some need it more than other, but prolonged distancing will be causing stresses.
Connections are made before and after meetings and in hallways. A generation of employees isn’t going to have that.
How do we protect our data as well as our clients’ data?
Getting funding for keeping technology current.