Excel is the world’s most popular spreadsheet, among both individuals and companies. Finance teams in particular rely on Excel for a variety of tasks, many considering it a vital accounting and finance tool. This is primarily due to its flexibility, availability, and, let’s be honest, because it has been ingrained in finance work practices for decades.

However, Excel also presents challenges, like complexity, inability to collaborate and it being error-prone. This dual sentiment towards Excel has resulted in what has become known as the finance “Love/Hate Relationship”.

Let’s dive deeper into the reasons underscoring this relationship, what finance teams should look out for when working with Excel and when should they consider complementary solutions.

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Advantages of Using Excel

Finance teams love Excel. Here’s why:

• Versatility and flexibility - At its core, Excel is a versatile and flexible solution, and that’s the biggest benefit it offers to finance and treasury management. Excel's functionalities (see below) allow finance teams to perform any task they need, in a way that is customized to their liking. This includes financial modeling, budgeting, forecasting, data analysis and more.
• Built-in functionalities: Excel provides multiple functionalities that finance teams need for their roles, like formulas, pivot tables, charts and more. These can be created fairly simply, allowing for cash management and predictions.
• Robustness - Excel supports more than millions of lines of data. This means businesses, including global organizations, can easily manage all their needs inside.
• Direct accessibility to data - Excel allows finance teams to do what they love best - touching and feeling the data. They can slide and dice the numbers in multiple, versatile ways, to explore new possibilities and identify new solutions.
• Availability - Excel usage is so high simply because it’s included in every Microsoft Office license. This makes it accessible and available to finance teams everywhere, without having to look around for other solutions. In addition, its ubiquitous use means that finance professionals transitioning to new companies do not have to go through platform onboarding (though they will need training on the new team’s specific excel layout and formulas).
• Cost - For those already using Microsoft Office, there is no additional cost incurred. This, as we all know, makes it a finance-favorite

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Disadvantages of Using Excel

However, Excel also poses challenges for finance teams. For example:

• Error-prone - One of the most significant issues in Excel is the error-prone nature of manual data entry and formula setting. A simple mistake, like a misplaced decimal or an incorrect range in a formula, can result in monumental errors, affecting financial statements and strategic decisions. 
• Cost of a mistake - A solution that is error-prone should be considered in light of the cost of being misleading or misinformed about the cash position. The likelihood of errors when copying data manually is higher, which may result in poor decisions when managing cash. Being unable to pay salaries or make vendor payments, losing funds or "parking" them in low-return channels for too long are all caused by bad-decision making that come with a high price. In every company, the cost of error is different, but without full visibility, these errors are not only more likely to occur but also take longer to discover. 
• Complexity - Financial models in Excel are becoming more complex, with data being collected across tabs and formulas. This information maze makes the Excel difficult to navigate, audit, update, validate, track and version. Such uncertainty can lead to a lack of trust in the data, especially when significant decisions rely on these models.
• Time-consuming - Manually entering data in excel takes time. This could include adding bank statements from multiple bank accounts and often multiple banks, inputting information from suppliers, gathering information from multiple global entities in different currencies and more. The more complex the spreadsheet, the longer it takes. 
• Collaboration obstacles - Excel’s cannot be worked on together in real-time, making collaboration and version control a significant challenge. When decisions need to be made quickly, based on the most current data and from a variety of data sources, Excel's traditionally single-user focus can be a bottleneck.

For example, if you have 10 different departments, all with their own versions, CFOs are required to wade through the various versions to compile a total financial picture. Multiple versions of the same file make it difficult to track and explain the changes between the different versions.

• No real-time picture of data - Collaboration obstacles also make it challenging to obtain a real-time, reliable picture of the data and cash flow. Having to manually data from different Excel versions and accounts means that the data is only as updated as the last manual entry. This makes it difficult to make real-time decisions and slows down strategic decision-making as well.
• Takes time to master: New users can easily create basic spreadsheets and produce new charts and graphs. But if you need to use macros, pivot tables or complicated formulas, expect a very steep learning curve.
• No integrations or automations - Excel cannot be integrated with data from other departments or with external platforms to get insights and make decisions. This makes the work repetitive, error-prone and inconsistent

While Excel offers versatility in financial tasks, its limitations in handling complex data and collaboration can lead to inefficiencies and increased risk of errors

Excel Alternatives

Excel can be used by finance teams until the finance operation becomes complicated at a certain point in a company's lifecycle. At that point, automated treasury solutions either can help address Excel’s shortcomings or replace it: the potential errors, complexities, the need to collaborate among global local teams, the unnecessary time spent manually entering data, lack of real-time visibility, the complex onboarding to existing formulas and lack of integrations and automation.

An automated treasury or cash flow management tool provides visibility, increases capital efficiency and gives finance teams full control. With automated treasury management solutions, finance teams can automatically:

• Manage liquidity, invest excess cash, minimize debt, and eliminate unnecessary costs.
• Foresee cash needs, identify trends and anomalies, and be prepared for different scenarios.
• Get Al-driven cash insights and trends and eliminate the need for unnecessary, error- prone spreadsheets.

Automated tools are capable of covering their cost and more, by increasing ROI on existing cash, optimizing debt management, reducing errors and frauds and maximizing productivity. Learn more here.‍

As companies grow, so do their cash management requirements. This leaves CFOs and treasury teams with new challenges to deal with. They need to manage multiple accounts across multiple currencies and geographies, ensure optimized use of financial instruments like credit lines and investments, gain control of their liquidity status, forecast cash flows, and more. The cost of an error is high, which is why many teams turn to cash management solutions at this stage.

Modern cash flow management solutions are automated platforms for optimizing cash flow. Some of them are also AI-driven. Instead of dealing with bulky, complex spreadsheets, they collect all your cash flow data into the platform. and present it with an additional layer of analysis. This streamlines the cash management and forecasting processes, ensures up-to-date visibility, and helps lean finance teams to manage cash risks, optimize liquidity and increase ROI on excess cash or debt.

While the benefits of adopting a cash flow management solution are obvious, choosing the right solution can be challenging. The following items should not be missed when evaluating your solution. Following this list ensures you are able to maximize your efforts and free yourself up for other responsibilities. 
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A robust cash flow management solution is essential for real-time financial tracking, ensuring that your business stays on top of its financial health with accurate and integrated data
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1. Complete cash visibility

Obtain a comprehensive and complete daily view of your cash positioning, including all bank and payment accounts. Make accurate and relevant short-term and long-term decisions with confidence without errors and data integrity risks. Look for:

• A single and centralized dashboard

• Up-to-date liquidity snapshot of cash, investments, and restricted cash

• Ability to filter across accounts, institutions, currencies, and more

• Daily/monthly cash reports

• Trends analysis

• Customizable reports

2. Reliable and comprehensive data connectivity

Probably the most important item on the list - Ensure your cash management solution brings in all the data you need to manage your cash flow. This will ensure your data is reliable, regularly updated, comprehensive, and enables you to make decisions that support your financial needs. Look for:

• Data connectivity via APIs to all global financial institutions, including banks, ERPs, and cash platforms, and any other financial systems that you use so that your data is regularly updated.

• Reliable data connectivity when APIs are not available, or not supported. Make sure there are alternative methods of gathering data from all financial institutions, even those that don’t support API connection, so you can get full cash flow visibility across all your accounts.  

• An overview and deep-dive of your cash flow and all activities including:
  - Reconciliation of transactions
  - Inflows and outflows
  - Trends
  - Historical balances

3. Reports and insights

Identify and prevent cash-related risks and identify and seize cash-related opportunities to optimize cash management and ensure errors are prevented. Look for:

• Actionable insights for effective cash management

• Alerts that allow immediate response

• Ability to set up account automatic buffers to improve capital efficiency and transfers

• FX hedging support

4. Resource efficiency‍

Make sure using your cash management solution is easy and intuitive to use. This will be one of its main advantages over using Excel: replacing manual work, accessible from anywhere, and freeing up you and your team for other prioritized needs. Look for:

• Self-serve: No IT required

• Tagging capabilities

• Easy setup

• SaaS solution

• Collaboration capabilities

5. Smart categorization abilities

Manage your accounts, transactions, and cash positioning to accurately analyze your current and future cash flow. Look for:

• Ability to create customized categories and sub-categories

• AI-based categorization process to replace your manual labor

• Automated ERP matching

6. Forecasting abilities

The adoption of a new cash management solution is a great opportunity to automate your cash forecasting, increase its effectiveness, and improve forecast quality by reducing human errors.. Look for:

• Easy comparison of forecasts against actuals

• Easy data collection and categorization, including ERP data

• Customizable forecasting methods for your business

• AI-based forecasting for tailored insights

7. Security

Safeguard your organizational data to ensure your cash flow data is secure, comprehensive, reliable, and available for you to use. For data security look for:

• Compliance with leading regulations like SOC 2

• Application security through practices like third-party penetration testing and vulnerability scanning

• Data encryption in transmission and at rest

• Real-time monitoring of risks and policy compliance

• Access management- RBAC, least privilege, etc.

• Secure development practices

What’s Next?

Choosing the right cash management solution is a strategic choice, since it will directly impact your ability to streamline financial operations, manage liquidity, and optimize cash flow. Therefore, this decision should not be taken lightly. Use this checklist to evaluate and compare different solutions. Don’t be afraid to ask vendors the difficult questions it raises, from which data they connect to to how they support forecasting, and more. By comprehensively comparing solutions, you can ensure your treasury operations will be more robust and accurate than ever. 

Learn more about Panax’s cash flow management solution that supports lean finance teams with complex treasury management needs.

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At growing companies, or companies with lean finance teams without a dedicated treasury function, controllers often find themselves wearing multiple hats. Without a dedicated treasury team, the responsibility of treasury management often falls on their shoulders. This expanded role requires controllers to not only excel in traditional financial functions but also to master the complexities of managing liquidity, mitigating risks, and ensuring financial stability.

Here’s what controllers in lean pre-treasury teams need to know about taking ownership of treasury management:

Juggling complex treasury operations, with lean resources

Without a dedicated treasury team, controllers must take charge of several critical treasury functions:

• Cash Management: Ensuring the organization has sufficient liquidity to meet short-term obligations while avoiding excessive idle cash. This involves cash flow forecasting, tracking accounts receivable and payable, and optimizing cash reserves.
• Risk Management: Identifying and addressing financial risks, including currency fluctuations, interest rate changes, and credit risks. Controllers may need to implement basic hedging strategies and stay vigilant about market trends.
• Debt Management: Managing loans, credit lines, and other forms of debt effectively, balancing costs and flexibility while ensuring compliance with loan covenants.
• Investment Management: Making decisions about surplus funds to maximize returns while maintaining liquidity and mitigating risks.

Understanding and taking ownership of these functions empowers controllers to ensure the organization’s financial health in the absence of a treasury team.

In pre-treasury teams, controllers play a critical role in managing cash flow, liquidity, and financial risk before a dedicated treasury function is established.

Prioritizing cash flow visibility

For controllers handling treasury responsibilities, cash flow visibility is paramount. Accurate, real-time insights into cash positions enable controllers to:

• Identify and address liquidity gaps.
• Plan for short-term financing needs.
• Optimize working capital.

Leveraging tools like cash management systems and enterprise resource planning (ERP) software can provide controllers with a consolidated view of cash across accounts, currencies, and business units. This visibility is crucial for effective decision-making.

Utilizing technology as a resource to work more efficiently

Controllers in lean teams must rely on technology to handle treasury tasks efficiently. Key tools and innovations include:

• Treasury Management Systems (TMS): Automating processes like cash forecasting, payment approvals, and risk assessments to reduce manual work and enhance accuracy.
• Robotic Process Automation (RPA): Streamlining repetitive tasks such as bank reconciliations and cash position reporting.
• Artificial Intelligence (AI) and Machine Learning (ML): Using AI and ML for predictive cash flow analysis, fraud detection, and scenario modeling.

These technologies not only save time but also help controllers manage treasury responsibilities effectively, even in lean setups.

Mitigating financial risks without dedicated resources

Managing risks becomes more challenging without a dedicated team, but controllers can still establish effective practices:

• Develop straightforward policies for managing foreign exchange and interest rate risks.
• Stay informed about regulatory requirements to ensure compliance.
• Utilize basic hedging techniques or financial products to mitigate risks where appropriate.

Controllers should also focus on regular reporting and analysis to monitor risk exposure and adjust strategies as needed.

Collaborating across functions

In lean organizations, collaboration is essential. Controllers must:

• Work closely with finance and operations teams to gather relevant data.
• Align treasury responsibilities with broader financial goals.
• Communicate regularly with executive leadership to ensure transparency and alignment.

Collaboration helps bridge resource gaps and ensures that treasury management is integrated into the overall financial strategy.

Ensuring regulatory compliance and strong governance

Even in lean teams, compliance cannot be overlooked. Controllers must:

• Stay updated on tax regulations, financial reporting standards, and anti-money laundering (AML) requirements.
• Implement strong internal controls to prevent fraud and errors.
• Use technology to streamline compliance tasks and ensure accuracy.

By focusing on governance and compliance, controllers can safeguard the organization’s financial integrity.

Balancing strategic and operational roles

Controllers managing treasury functions must balance day-to-day operations with strategic planning. This includes:

• Evaluating short-term and long-term financing options.
• Planning for growth initiatives, such as capital investments or expansions.
• Assessing the financial implications of key business decisions.

By adopting a strategic mindset, controllers can contribute to the organization’s financial success while managing immediate treasury needs.

Adapting to dynamic financial environments

Economic and market changes can pose significant challenges for treasury management. Controllers in lean teams must:

• Monitor macroeconomic trends and their potential impacts.
• Adjust strategies in response to changing interest rates, inflation, or currency fluctuations.
• Build contingency plans to address unexpected disruptions.

Adaptability and proactive planning are crucial for navigating an ever-changing financial landscape.

Supporting controllers in pre-treasury teams to manage complex treasury operations

Panax is designed for lean teams with complex treasury needs, so it is a perfect tool for controllers who need to manage treasury. Panax utilizes automation and AI to reduce manual work and increase strategic insights, so controllers can have full visibility over all of their cash. Panax makes cash forecasting and budgeting easy, even without a dedicated team. Panax generates reports so that controllers can get a bird’s eye view of their cash situation, but also deep dive into specific entities or currencies, so they can avoid cash risks and optimize liquidity. Get a Panax demo here.