Utilize 9 Months Cash Forecasts into the Future

Treasury can continually increase their profile by providing proactive guidance to the business. With accurate long term cash forecasts, they are able to see the big picture view of cash and help the company take proactive measures to improve and mitigate any shortfall of cash.

Decrease Interest Expenses with Long-term Forecasts

With accurate long-term forecasts, Treasury has visibility on available cash that can be utilized to pay debt faster and responsibly while decreasing interest expenses.

2. Have Global Cash Visibility

By having global cash visibility, treasury can find opportunities for

• repatriation (bringing back cash home)
• paying down foreign currency-denominated debt.

Will it be a U-shaped recession or
L-shaped recession?
Run what-if scenarios to see the possible impacts of cash for a variety of scenarios and analyze how the recovery goes.

It is important to understand the likely accuracy of forecast considering its past performance. Without doing variance analysis it is difficult to estimate if the forecasts are accurate or not and how far into the future they are accurate and to what degree.
Continued variance analysis helps determine the degree of confidence needed for long term forecasts. And based on that confidence level as well as possible variance, treasury teams can make the right decision as to how much cash is available to leverage.