Growing companies are finding that stronger sales don’t automatically bring a clearer view of cash, and their finance chiefs are directing investment toward closing that gap.
The PYMNTS Intelligence report “Growth and Scaling: The Corporate Finance Inflection Point,” published in August, was based on a June survey of 60 chief financial officers at companies in the United States generating $100 million to $1 billion annually. It found that even though 58% of firms increased revenue over the prior 24 months, 62% reported difficulty managing or scaling cash flow forecasting. The encouraging finding was that executives have identified practical improvements that can help them see their cash position more clearly and prepare for further growth.
Key findings from the report:
- Cash visibility presents the biggest financial challenge. Cash flow forecasting was the single most difficult finance or back-office task for 37% of firms. Looking more broadly, the 62% reporting forecasting difficulties exceeded the share struggling with reconciliation, or matching financial records, by 20 percentage points. A forecast works like a windshield. Finance leaders need a clear view of what’s ahead to decide when they can spend and when they should conserve cash. Disconnected information makes that view harder to maintain.
- Operational changes put more pressure on the information behind forecasts. Among firms making at least three significant business changes, 59% reported difficulty bringing data together, compared with 24% of firms making fewer changes. Reconciliation difficulties followed a similar pattern, at 59% versus 27%. These gaps showed why cash visibility depends on work across the finance department. Adding customers or products creates more information to collect and check, even before a company sees the full revenue benefit.
- CFOs are targeting investments that address these weaknesses. Cash flow forecasting led their investment priorities at 52%, followed by real-time reporting at 35%. Another 33% prioritized reducing manual processes and 32% aimed to unify finance data. These choices suggested executives want a more dependable view of money coming in and going out. The report also found that automation and data integration helped firms manage complexity across different levels of uncertainty and operational change.
Other findings reinforced the opportunity to improve before growth creates further strain. The report revealed that 62% of CFOs said their finance and back-office systems were at least mostly prepared for the next 24 months, although only 12% reported complete readiness. Standardizing processes received the strongest positive assessment among approaches to managing complexity, followed by automation and data integration.
For firms planning their next expansion, the results offer the practical starting point of making financial information easier to assemble and use.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
