By Pieter Cronje, Director & Head of Cash, Liquidity & Forecasting
Many organisations struggle with treasury cash forecasting. Spreadsheets are commonly used for this task due to their ease of use; however, they have limitations.
The Downside of Spreadsheets
- Errors: Manual data entry in Excel can lead to errors.
- Scalability: Excel is not suitable for large or complex cash flow forecasting models.
- Time-Consuming: Manual data entry and complex models can be time-consuming.
- Data Overload: Spreadsheets are no longer sufficient for handling the amount of data available today.
The Cost of Inaccurate Forecasts
Inaccurate cash flow forecasts can have negative implications for businesses, including:
- Inaccuracies: Unreliable data can lead to future cash flow problems.
- Vulnerability: Lack of liquidity planning can leave organisations vulnerable to unexpected liquidity gaps.
- Disruptions & Risk: Unexpected expenses and liquidity gaps can disrupt operations and put financial stability at risk.
Why CashAnalytics, a dedicated forecasting tool, is a Game-Changer
- Error Reduction: CashAnalytics reduces errors by minimising manual data entry.
- Scalability: CashAnalytics is designed to handle large and complex cash flow forecasting models, unlike Excel, which can struggle with scalability.
- Time Savings: By automating data entry and calculations, CashAnalytics saves treasury teams valuable time.
- Data Handling: CashAnalytics is built to manage the large datasets that modern businesses generate, a task that Excel often finds challenging.
- Variance Tracking: CashAnalytics’s variance tracking feature allows for improved accuracy and timely adjustments, which Excel may not easily provide.
CashAnalytics supports mission-critical cash and liquidity management activity
Simplified Setup and Structure
TreasuryONE is the CashAnalytics representative in SA and highly skilled in the implementation of the forecasting solution. Implementation is user-friendly and can be set up to match an organisation’s specific reporting needs. The structure can be customised, and workflow tools enhance the planning process.
Seamless integration with your ERP for automated AP and AR forecasting and analysis
Trend Analysis
CashAnalytics’ trend forecasting feature enables businesses to create cash flow models using historical data, applying various trend models from simple to advanced smoothing techniques. Integrated with AP and AR unwinds, it delivers detailed short-term forecasts from invoice data and long-term projections based on trends. Highly automated, it reduces manual effort by up to 90%, allowing finance teams to focus on analysis and strategy. The system is also configurable, enabling users to tailor trend models and growth factors to specific cash flow categories.
In summary, CashAnalytics’ trend forecasting capability empowers businesses to:
- Automate the creation of trend-based cash flow forecasts using historical data.
- Utilise a range of trend models, from simple to advanced, tailored to specific cash flow categories.
- Combine trend forecasting with other methods, like AP and AR unwinds, for comprehensive short-term and long-term projections.
- Reduce manual effort, allowing finance teams to dedicate more time to analysis and strategic planning.
Variance Tracking is Vital
CashAnalytic’s ability to track variances allows organisations to improve cash flow projection accuracy and make timely adjustments. This feature helps ensure data accuracy and provides up-to-the-minute data on cash and liquidity.
CashAnalytics’ Liquidity Tools
CashAnalytics provides a comprehensive view of your organisation’s liquidity, integrating with existing systems to give you insights on cash, investments, credit, and capital markets. This holistic view allows for a deeper understanding of your cash position, empowering you to identify trends, patterns, and potential risks, ultimately leading to more informed and proactive liquidity management.