Read the eBook to know insights on why organizations are investing in re-engineering their cash forecasting process & the role of the Treasury in it.
There are 4 important components of the cash forecasting process which play a critical role in making the process faster and more efficient.
Approach – Art vs Science – The approach in which the cash forecasting is done defines the accuracy of the forecasting. So it is important to define and have an approach based on the type of cash forecasting you do. There are essentially two main types of cash forecasting methods – direct or indirect.
Data Gathering –
Modeling –Once the treasury team has collected and aggregated all the relevant data, they may create their forecast
Variance Analysis –
Improving the strength of these pillars can go a long way in building reliable cash forecasts. The following discusses how these are key success factors in building an accurate and reliable forecast.
The maturity of the cash forecasting process corresponds to the effectiveness of the process with respect to the four components. The next chapter explores how the cash forecasting process could be evolved on the four high impact pillars.
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