Some of the challenges in cash forecasting are:
Subpar technologies limit cash forecasting accuracy, which negatively impacts cash flow such as:
Technologies like AI, RPA, and ML bring significant changes to the cash forecasting landscape and drive forecast accuracy faster. Here are some of the advantages that can be reaped from the following technologies:
AI supports adding multiple variables to track accurate payment due dates by incorporating customer-specific payment trends and patterns. The traditional Excel-based forecasting limits adding multiple variables, hence reducing the cash forecasting accuracy. Forecasts can be fine-tuned to make decisions on taxes, debts, investments with historical data. The additional benefit is that AI enables the use of suitable models for each cash flow category, and supports variance analysis to be performed for various periods.
Effects of accurate forecasts by leveraging AI:
Impact on driver-based planning
Accurate forecasts enable performing timely and efficient collaborative planning and facilitate treasurers to make fact-based decisions for ‘what-if’ scenarios.
Impact at managing cash
Accurate forecasts increase the ability to:
Technology supports treasury to closely monitor cash flows by forecasting frequently. This supports treasurers and CFOs to gain visibility into long-term horizons, and detect cash crunches early to take preventive measures during economic crisis.
The HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.