Cash flow management is crucial for all businesses, regardless of how well they are doing. For many businesses, it is also the key to their survival.
According to an Intuit survey in 2019, 61% of SMBs worldwide struggled with cash flow management. According to US Banks, 82% of SMBs failed due to inadequate cash flow management strategies.
When companies cannot manage cash, it leads to cash flow projection challenges.
Businesses worldwide agree that going digital is essential for long-term viability. Digital transformation and profitability go hand in hand with businesses.
The cash flow projection purpose is to help treasury leaders improve cash flow management and make informed decisions. A cash flow projection also encourages companies to make attainable financial goals.
A cash flow projection software provides a comprehensive view of an organization’s cash balances. It boosts treasury efficiencies while reducing administrative burden and improving the management of a company’s operations, funding, and budgeting.
This cash flow projection template in Excel enables companies to monitor the inflows and outflows of the business’s cash and the closing balance on a daily, weekly, 13-week, or monthly basis.
On the other hand, an automated cash flow projection calculator can help businesses remain on top of their finances by calculating the operating cash flow, net cash flow (in/out), projected cash flow, and closing balance.
For treasury and finance teams, cash flow projection software is designed to manage cash flows and provide real-time visibility through dashboards and reports. By eliminating manual and laborious tasks, it makes it easier to control finances and understand trends based on historical data.
The following are the advantages of using a business cash flow projection tool:
AI-based cash flow projection tools help organizations prioritize their tasks better and improve forecasting accuracy. This helps the treasury team stay abreast of changing environments and macroeconomic fluctuations that might go unnoticed otherwise.
To learn more about how HighRadius cash flow projection tools can help you, speak with our solution experts.
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.