Tech Sector Cash Flows Hampered by Keeping Treasurers in the Dark

Technology industry treasurers face different challenges than their peers in other sectors. For example, only 50% report having strong influence in decision-making, far below other sectors like consumer goods. Their limited involvement affects key financial outcomes, such as cash flow predictability and revenue optimism.

Tech treasurers are 73% more likely than other department heads to say more collaboration is needed. For example, 4 in 5 believe finance departments would benefit from closer collaboration. In contrast, 62% of other department heads think current collaboration levels are sufficient, further isolating them. Greater treasurer involvement could close the influence gap, reducing debt and speeding up cash conversion cycles.

These are some of the findings explored “The Impact of Misunderstood Treasurers in Technology,” a PYMNTS Intelligence and Citi collaboration. This examines the challenges technology industry treasurers face, including poor interdepartmental collaboration and the lowest cash flow predictability across sectors. It draws on insights from a survey of 500 treasurers and other department heads (representing business strategy, marketing, payments and product development) across various industries, conducted from April 9 to May 28, providing a comprehensive look at the barriers limiting treasurer influence and that limited influence’s impact on financial outcomes.

Inside “The Impact of Misunderstood Treasurers in Technology”

• Insight into how treasurer involvement impacts cash flow predictability compared to other financial departments
• Why tech firms can benefit from greater collaboration between treasurers and finance or business strategy teams
• Insight into why treasurers believe they can improve cash conversion cycles and reduce debt
• How tech companies can unlock growth opportunities by increasing treasurer influence in strategic decisions

The report explores how tech treasurers’ involvement — or lack thereof — affects specific metrics as well as overall financial performance. This report features 10 charts detailing their influence across departments. It examines the disconnect between treasurers and other teams, and the financial benefits of closing that gap. It provides crucial insights on how technology companies can enhance financial stability by increasing collaboration. Download the report to learn more.

The post Tech Sector Cash Flows Hampered by Keeping Treasurers in the Dark appeared first on PYMNTS.com.