CFO Level

An effective cash forecast directly impacts many key performance indicators that CFOs and senior finance executives regularly measure, and on which they are themselves measured, from return on investment and cost of funds through to liquidity and solvency ratios, cash flow and working capital metrics, amongst others. It is therefore in every CFO and senior finance executive’s interests to ensure that treasury is equipped to produce the most accurate, complete and timely forecasts possible to improve key performance indicators and make high quality decision-making.

 Treasury Level

An accurate cash forecast provides treasurers with a dependable and complete view of the evolution of the organization’s capital position and planning into the future. Moreover, treasury can plan and execute effective hedging operations to mitigate the risk. Efficient cash flow forecast process can both improve treasury efficiencies and reduce duplicative efforts from the global subsidiaries.

Credit and AR Manager level

Forecasting cash requirements and anticipated cash flow on a weekly, monthly, and yearly basis will give your business the tools to make better business decisions and head off problems before they arise. Having this detailed cash roadmap will allow you to manage debt effectively, plan for the use of excess cash, and as already stated, head off problems before they arise.