Executive Summary
A leading retail company faced significant challenges in optimising its cash flow forecasting processes. The organisation grappled with time-consuming manual efforts, limited capacity for analysis, and the inherent risk of errors in their existing
Excel-based approach.
Challenges
Tedious Data Collation: The finance and treasury teams spent substantial hours each week manually consolidating information for the cash flow forecast, hindering efficiency.Analysis Time Constraints: The prolonged data collation process left minimal time for in-depth analysis of the cash flow forecast and variances such as forecast versus actual and forecast versus forecast,limiting the organisation’s capacity to make informed financial decisions.Excel-Based Risks: The reliance on manual Excel templates posed the risk of human errors, including finger and formula mistakes, potentially impacting the accuracy of the cash flow forecast.
Solution
A revolutionary approach to financial forecasting. Utilising a world-class, dedicated forecasting tool, our service delivers exceptional results in accuracy and efficiency. By automating the forecasting process, we save our clients countless hours and eradicate manual errors.
What truly sets our service apart is the expertise of the TreasuryONE team, who can directly analyse data from clients’ bank statements, allowing client teams to focus on strategic analysis rather than tedious data entry in Excel spreadsheets.
Results
Through the collaborative efforts of technology and human expertise, an impressive accuracy level of 99.8% in the cash flow forecasting process was achieved.The automated cash flow forecasting process significantly reduced the hours previously spent on manual collation, allowing the organisation’s finance teams to focus on value-added activities. From 3 weeks down to 2 hours for a monthly forecast.With more time available for analysis, the finance and treasury teams could delve deeper into the cash flow forecast, gaining valuable insights and making informed decisions.The introduction of AI-driven automation and expert oversight substantially mitigated the risks associated with manual errors, contributing to a high level of accuracy in the cash flow forecast.The advanced reporting pack provides a clear overview, insightful visualisations, and key performance indicators, ensuring that stakeholders get accurate and easily understandable information. This streamlined reporting process enhances communication and supports well-informed decision-making.
Benefits
Dedicated Cash Flow Forecasting Tool: TreasuryONE implemented a dedicated cash flow forecasting tool, tailored to the retail sector’s specific needs. The tool aimed to streamline the forecasting process and enhance accuracy.AI-Driven Automation: Utilising artificial intelligence algorithms to analyse actual bank statements drastically reduced the time required to generate a base cash flow forecast eliminating the need for cumbersome integration with the ERP, allowing for more timely and responsive financial planning.Expert Oversight: TreasuryONE deployed a team of forecast experts to complement the automated process and the organisation’s finance team. This human oversight ensured the accuracy and reliability of the cash flow forecast, combining the efficiency of AI with the expertise of financial professionals.Transaction Mapping for Detailed Analysis: All financial transactions were meticulously mapped to specific line items within the forecasting tool. This mapping facilitated a comprehensive and detailed variance analysis, empowering the finance and treasury teams to identify and address deviations promptly.