Here's What Industry Experts Say About Cash Flow Forecasting

Cash Flow


Estimating the flow of cash in and out of business in a bracketed period refers to the term cash flow forecasting. It helps companies to predict future cash positions, earn returns on a cash surplus, and avoid crippling cash shortages.


Maintaining proper cash flow forecasting is the responsibility of the finance team of your company. However, the process to build a reliable forecast involves multiple stakeholders and data sources within the organizations.


The most suitable way to forecast cash flow depends on your business objectives, requirements of the investors, management team, and information within your company. You have to build a foundation for a cash flow forecast that gives your business the required visibility to utilize the cash safe and sound.


Here are some key aspects of cash flow forecasting from the perspectives of the experts and how small accounting firms should progress in the direction of achieving it successfully. It illustrates how automation in cash flow forecasting can streamline the entire process.

Automation Can Streamline Cash Flow Forecasting

Big-scale companies often invest both time and energy into forecasting at business and corporate levels. But, what consumes their heavy amount of time is low-value activities like data collection and manipulation of spreadsheets.


If this time is devoted to fulfilling high-value activities that draw useful data from their insights and help in eliminating the shortcomings that lie in between, then the whole scenario can take a 360-degree change.


There is no treasury or finance function without spreadsheets. But, automating the cash flow management process can save up to 90% of the manual effort with the use of spreadsheets in determining and analyzing a forecast.


Automation is the backbone of any company when it comes to expanding forecasting processes as it grows with time. Many companies who decide to merge and work as a unit in the future, switch to cash forecasting automation to simplify the monitoring process of cash flow. They devise methods to create a balance needed to manage their organization after being merged and deliver progressive results.


The Bottom Line

To ensure that your business insights from a cash flow forecast are determining your business objectives, you need to hire professionals for the same. Gulla CPA provides services in helping you along with other hospitality accounting firms to streamline the cash flow forecast and helps businesses foster trouble-free finance management.

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