Moving Beyond Spreadsheets for Cash Forecasting


An actionable summary that examines the challenges of manual cash forecasting with excel and how Artificial Intelligence enables better decision making.

Contents

Chapter 01

Cash Forecasting is the Top Priority for Treasurers

Chapter 02

The Vicious Cycle of Excel-Based Cash Forecasting

Chapter 03

AI-enabled Cash Forecasting

Chapter 04

Summary
Chapter 01

Cash Forecasting is the Top Priority for Treasurers


According to PwC’s 2019 Global Treasury Benchmarking Survey, cash forecasting has been the highest priority for treasurers for the last three years. 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 primarily because of manual processes posing operational challenges.

The HighRadius 2019 Cash Forecasting Survey revealed that 91% of organizations still rely on spreadsheets for cash forecasting. However, excel-based forecasting continues to bog down treasury professionals with its complex functions.

“We’ve always done it that way” is a common excuse that one encounters.

Day in the Life of a Treasury Professional
Performing manual cash forecasting

Day In The Life Of a Treasury Professional

Treasurers consider manual Cash Forecasting their biggest challenge because:

  • Excel based processes are inefficient and error-prone
  • Hard to collaborate across departments
  • Hard to get data from different sources (ERP, Banks)
  • Absence of regular variance analysis to analyze/improve process
  • Hard to know individual department-level forecasts
  • Lack of confidence in forecast beyond a one or two week duration
Chapter 02

The Vicious Cycle of Excel-Based Cash Forecasting


Vicious cycle of cash forecasting

Get Rid of this Cash Forecasting Dilemma

Even in large enterprises, treasury teams are often small in size and overburdened. Automating a particularly time-consuming part of their daily routine can free them up to focus on more strategic work that brings value to the business.

In today’s blink-and-you’ll-miss it, data-heavy business landscape, data silos act as bottlenecks for making swift decisions. Adopting AI-enabled technology empowers treasury teams to evolve from a purely operational role to a strategic role, spending less time on extracting data and more time on providing insightful, trusted foresight that enables the CFO to plan for what’s next.

Chapter 03

AI-enabled Cash Forecasting


Day in the Life of a Treasury Professional
with AI-enabled cash forecasting

AI-enabled-Cash-Forecasting

The role of treasurers is to make short and long-term decisions, even from manual
forecasts. Here are the benefits that AI-enabled cash forecasting bring to them:

  • Automating highly manual, low-value and error-prone tasks
  • Accuracy based on real, historical data
  • Increased confidence in decision making (both short and long-term)
  • Flexibility and ease to do ‘what-if’ scenarios/modeling.
Chapter 04

Summary


Cash Forecasting is the top Priority for Treasurers

91% of Organizations still Rely on Spreadsheets for Cash Forecasting

Manual Cash Forecasting Involves:

  • Data Gathering
  • Collaboration with Teams
  • Consolidation
  • Variance Justification
  • Report Sharing

Spreadsheet-Based Reports are Inherently “ DEAD ON ARRIVAL” When they reach the Treasurer or CFO

Automation Allows Treasury Teams to Focus on Strategic Tasks

AI-Enabled Cash Forecasting Enables Treasury Teams to

  • Use Technology to Gather and Consolidate Data
  • Have Increased Confidence
  • Make Short-term Decisions
  • Make Long-term Decisions

Start Leveraging AI-Powered Cash Forecasting Cloud Today

Request a demo with one of our AI consultants
Visit highradius.com/treasury for free demo

  • Higher forecasting accuracy with AI replacing spreadsheet formulas
  • Fully automated cash forecasting with daily updates
  • Accurate 1 to 12-month cash forecasts for optimized long term investment and funding
    decisions

Cash forecasting cloud

Chapter 01

Cash Forecasting is the Top Priority for Treasurers


According to PwC’s 2019 Global Treasury Benchmarking Survey, cash forecasting has been the highest priority for treasurers for the last three years. 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 primarily because of manual processes posing operational challenges.

The HighRadius 2019 Cash Forecasting Survey revealed that 91% of organizations still rely on spreadsheets for cash forecasting. However, excel-based forecasting continues to bog down treasury professionals with its complex functions.

“We’ve always done it that way” is a common excuse that one encounters.

Day in the Life of a Treasury Professional
Performing manual cash forecasting

Day In The Life Of a Treasury Professional

Treasurers consider manual Cash Forecasting their biggest challenge because:

  • Excel based processes are inefficient and error-prone
  • Hard to collaborate across departments
  • Hard to get data from different sources (ERP, Banks)
  • Absence of regular variance analysis to analyze/improve process
  • Hard to know individual department-level forecasts
  • Lack of confidence in forecast beyond a one or two week duration

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The HighRadiusTM Treasury Management Applications are uniquely powered by an Artificial Intelligence technology created exclusively to redefine the forecasting and cash management processes, so that treasurers spend less manual effort but extract better outcomes such as making more accurate cash forecasts across all cash flow categories, increased forecasting frequency and variance reporting, gaining instant visibility into real-time cash positions across bank accounts at any level and achieving 99%+ straight-through reconciliation of bank statements without human intervention. The solutions are delivered via the cloud which enables them to be seamlessly integrated with multiple systems including your ERP, TMS, accounting systems, and banks instantly and simultaneously.