Keith Bergman, Managing Director at Ledgewood Advisory Group, put it clearly: “Cash forecasting is the art of estimating the future cash position. It ensures the right amount of cash is available when it is needed.”
Simply put, efficient and accurate cash flow forecasting allows firms to achieve full control of their budgets and capital structures, and thereby helps those companies both with day to day tactical decisions and to ensure their meet their strategic objectives.
Companies adopt the Prophix Corporate Performance Management software, to address challenges in cash forecasting:
◦ Lack of access to current and accurate data
◦ Poor communication with other departments
◦ Difficulties obtaining data from banks in a timely manner
◦ Insufficient historical data to predict future performance
◦ Absence of variance analysis between forecasted figures and actuals
◦ Forgetting to include tax liabilities
◦ Neglecting seasonal and cyclical trend adjustments
◦ Inability to aggregate data as needed
In today’s uncertain political and economic environment , it is essential to rapidly be able to evaluate to reforecast different ‘what if’ scenarios.
Paul Vickers, VP of Finance and Administration of PARTEQ Innovations recently commented
Your company needs accurate cash forecasts. You may need to determine if you have sufficient cash available to fund a new project or simply to ensure that your company won’t encounter financial difficulties in the future. Either way, understanding your precise cash position can lead to better decision making on behalf of the business.
Ask us for a copy of the new Prophix Whitepaper “Learn the secrets to control your cash” or meet with us at Gitex or just give us a call 0097143365589
