The Role of AI in Predicting A/R & A/P for Accurate Cash Forecasting

Treasurer’s guidebook on how to overcome the challenges involved in forecasting A/R and A/P with Artificial Intelligence and help treasuries achieve accurate forecasts.


Chapter 01

Importance of Cash Forecasting

Chapter 02

Why Is Forecasting A/R and A/P Challenging?

Chapter 03

Improving Cash Forecasting: Artificial Intelligence As an Enabler
Chapter 01

Importance of Cash Forecasting

Cash is often regarded as the lifeblood of an organization as it enables the proper functioning of a company. However, when it comes to forecasting cash, most companies are lagging behind due to their inability to predict A/R and A/P accurately.

What Are the Top Challenges in Cash Forecasting?

Cash forecasting is a complex problem and trying to estimate what will happen on the A/R side of the equation is much more complicated than on the A/P side.
Both have a component of unpredictability, but

  • With A/P, you know what is due and when you plan to pay that amount
  • With A/R, you know when payments are due from your customers, but you usually cannot
    reliably predict if they will pay on time, early,late or not at all.