Why Effective Cash and Liquidity Management Is Essential When Responding During a Crisis

Why Effective Cash and Liquidity Management Is
Essential When Responding During a Crisis

Why Effective Cash and Liquidity Management Is
Essential When Responding During a Crisis
The Looking Forward with Workday webinar series is evolving to give you insight into
how Workday can support your organization as you respond to the changing needs of
your employees and your business during this challenging time.

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Alice Xu
Treasurer
Workday
Hilary McClure
Director, Product
Management
Workday
Sam Buchner
Product Marketing Director
Workday

Agenda
01 Impact of COVID-19 on the Office of the CFO
02 Best Practices Cash and Liquidity Management
03 Workday Cash and Liquidity Management
05 Demo
06 Q&A

Office of the CFO Best Practices
COVID-19 Respond Strategy

Workday Office of the CFO Respond Strategy
Agility
Insight
Efficacy

Office of the CFO Respond Strategy:
Cash and Liquidity Management Best Practices
Long Term Capital
Allocation and
Capital Structure
Strategy
Create an Internal
Cash Culture
Be Prepared and
Adapt
Global Visibility
1 2 3 4 5
Set up Proper
Governance and
Compliance

Workday Confidential
Be Prepared
and Adapt
How much cash do we have?
What can and can’t be used?
Insight into:
• Daily previous day and current cash position
• Investments
Global Visibility
1 Need

Do we have enough for the next 13 weeks, 12 months or 3 years?
Do we have enough liquidity for acquisitions, another new building, etc.?
Be Prepared and
Adapt
2
• Strategic alignment with CFO
• Forecast and adapt to needs of business
• Align with FP&A
Need

What if we don’t have enough?
Are we able to get additional capital resources?
• Capital structure plan to support company goal of
reaching $10 Billion
• “Rainy day fund”
• Launched inaugural credit facility
Need
Long Term Capital
Allocation and
Capital Structure
Strategy
3

5
Drive
Automation
6
Set up Proper
Governance and
Compliance
What is our current cash position?
• Share visibility to accommodate more frequent requests,
current position and any red flags
• Make sure critical stakeholders understand the importance
of effective cash management to support the business
• Develop working capital efficiency to support AR and AP
Need
Create an Internal
Cash Culture
4

How can our teams get more time back for analysis?
• Control over visibility and access to cash, e.g.
bank signatories
• Audit for tracking allows confidence when working
in office but especially when working remotely
Need5
Set up Proper
Governance and
Compliance

Workday for Office of the CFO
Enterprise Planning
Financial, workforce, sales, operational
Driver-based scenario modeling
Rapid plan-to-action
Spend Management
Strategic sourcing and supplier management
Full source-to-pay lifecycle
Global Finance Operations
Continuous accounting and intercompany
Real-time consolidation and close
Always-on audit
Analytics & Reporting
Variance, trend, plan vs actual, ad-hoc analysis
Financial, management, statutory reporting
Benchmarking, data discovery
Intelligent Data Foundation
High-volume financial, workforce, operational data
Accounting transformation for external systems
Fuel for machine learning
Human Capital
Management
Planning
Analytics and
Reporting
Spend
Management
Intelligent
Data
Foundation
Financial
Management
Plan
Execute
Analyze

Financial,PerformanceandSpendManagement
Workday for Office of the CFO
FP&A CPO Auditor TreasurerController
EfficacyAgility Insight

Single source for truth
Simpler cash and working
capital management
processes
Ability to adapt and plan for
future cash and liquidity needs
Treasurer
• Run cash forecasting
based on live data
• Run what if scenarios to
anticipate potential
outcomes
• Bank signatory control
• Real time insight into cash
and working capital
• Ingest investment
information to track the
value of investments or
see what's maturing soon
• Bank fee analysis insights
Insight
• Direct bank connectivity
• Aggregates prior day, and
intra day cash positions
• Single settlement engine for
AP, AR, & Payroll
Efficacy
Workday Delivers:
Global Cash and Working Capital Management
Agility

• Over 5000 banking integrations
• Over 1000 customers
• Processed over 1 billion payments
‒ Domestic payments in more than 100 countries
‒ Cross border payments in more than 200 countries
• Growth > 35% year over year
Did You Know
capital management
processes
Treasurer
Workday Delivers:

capital management
processes
Treasurer
Workday Delivers:
Global Cash and Working Capital Management
“I would estimate conservatively that we will be saving anywhere from 60-80 hours a
month globally, while also allowing us to use more bank transfers rather than ad hoc
(creating cleaner data).”
“Settlement runs are so much easier with everything built in and connected end to
end, including the integrations.”
“Decided against purchasing a Treasury Management System, avoiding recurring costs.
Reduced time spent on analysis for FBAR reporting from a week to a few hours.”
“We saved estimated $500k-$1M by using Ad Hoc Payments instead of purchasing
replacement software and extra licenses.
“The Settlement Runs and Payment Runs are so much easier compared to our
previous system!”

Workday Helps Finance Achieve Three-Pronged
Respond Strategy
Agility
Insight
Efficacy

1. Be proactive rather than reactive
2. Great opportunity to rethink and redesign strategy and execution
3. Stay connected
4. It is okay to take baby steps on automation
5. Be flexible and open minded
Key Takeaways

Thank you for joining us!
Our series has expanded. Join us in these upcoming sessions:
Thursday 10 AM PT
June 11, 2020
Navigating the Changing
Business Landscape for Midsize
Organizations
Tuesday 10 AM PT
June 16, 2020
Sourcing and Procurement Best
Practices During Uncertain
Times
Tuesday 10 AM PT
June 23, 2020
Planning Your Workforce During
Turbulent Times
Thursday 10 AM PT
June 25, 2020
How Machine Learning Is
Helping Organizations Adapt to a
Changing World of Work

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