80% of Tech Treasurers Believe Closer Ties With Finance Would Benefit Firms

Treasurers want to be part of the technology conversation. A recent report from PYMNTS Intelligence, in collaboration with Citi, reveals a disconnect between technology treasurers and their peers in other departments, leading to reduced influence in decision-making processes and potentially hampering financial performance in the sector.

The report, “The Impact of Misunderstood Treasurers in Technology,” surveyed 500 treasurers and other department heads across various industries, including technology, and found that technology treasurers report lower levels of influence compared to their counterparts in sectors like consumer goods.

This lack of integration with departments such as payments, partnerships, product and engineering results in treasurers being less involved in crucial interdepartmental decisions.

Surprisingly, 62% of other department heads in technology believe current levels of collaboration are ideal, despite the fact that technology industry treasurers are 73% more likely to say more interdepartmental collaboration is needed.

The consequences of this “influence gap” are significant for technology companies. The report highlights that the technology sector has the lowest shares of cash flow predictability and revenue optimism among the five sectors studied. Only 42% of technology treasurers report high cash flow predictability, the lowest across all industries.

In contrast, 92% of treasurers believe that increasing their involvement with other departments, especially finance and business strategy, could improve cash flow predictability. Furthermore, 80% of technology treasurers believe the finance department would benefit from closer collaboration with them, and 62% feel the same about business strategy.

This disconnect suggests that a potentially powerful lever for improving financial outcomes in the technology industry is not being fully used.

Key data points from the report include:

Only 50% of treasurers in the technology industry report having strong influence within their firms, compared to 73% in consumer packaged goods.

82% of technology industry treasurers note at least one barrier to interdepartmental collaboration, the highest share across all sectors studied.

Just 42% of technology industry treasurers report high cash flow predictability for their firms, the lowest across all industries.

Beyond the influence gap and its impact on cash flow predictability, the report also delves into the specific barriers hindering collaboration for technology treasurers. These include a lack of necessary information, physical separation due to remote work, and differing communication methods across departments. Notably, technology treasurers are 25% more likely than other colleagues to report being excluded from critical meetings.

The report also indicates that a majority of technology treasurers believe greater interdepartmental involvement could lead to benefits beyond improved cash flow, such as faster cash conversion cycles, reduced debt, boosted profit margins, and greater returns on investment.

The findings underscore the need for technology companies to address these collaborative shortcomings to unlock potential financial benefits and strengthen overall performance.