Cashforce and smart cash forecasting

| 03-04-2018 | treasuryXL | Cashforce |

As stated in our last blog, on Tuesday 27th March 2018, treasuryXL attended a seminar in Amsterdam organised by TIS about optimizing cash flow. The last speaker at this event was Nicolas Christiaen, mananging partner at Cashforce. They are a fintech leader in Cash forecasting & Treasury solutions for corporates. They took the opportunity to explain to all the attendees what their product is and how it works. In this article we shall attempt to provide an insight into what we learnt.

Cashforce focuses on automation and integration within cash forecasting and treasury management systems. They connect the Treasury department with other departments within a business – offering full transparency into the cash flow drivers, resulting in accurate and efficient cash flow forecasting. They also offer a flexible forecasting method which we shall explain later.

Forecasting is a subject that can cause irritation within a company. It requires different departments to collaborate on a regular basis and provide consistent information which needs to grouped together to present a complete overview of the expected cash movements for the agreed time period. This input encompasses accounts payable, accounts receivable, procurement, projects, HR, treasury etc. All this information needs to be presented in a consistent format so that everything can be aggregated. Problems arise when data is not delivered, or delivered too late, or inaccurate.

The solution would appear to be a single method to extract all the relevant data from all the relevant databases and systems and to have this incorporated together with the correct running opening bank balances.

Cashforce have developed a platform that links into all the aforementioned databases and uses the agreed metrics within the different departments to arrive at a forecast. This leads to an integrated platform driven by your own systems. As the data parameters have been mapped and agreed beforehand, this means that it is possible to drill down to a very granular level to predetermined transaction details. This means you can go from the comprehensive level to overview per account, per client, per accounting group as the original chart of accounts has been embedded into the platform.

Included with the platform is a special functionality that takes into account the actual dispersal from a particular client and allows you to see how they actually performed as opposed to their agreed performance. These metrics can then also be used to adjust the forecast to the past behaviour of all component parts from the chart of accounts, enabling a forecast to be presented that reflects the actual results from the past.

It becomes possible to drill down on every single aspect with the forecast and interrogate an individual item. Furthermore, it is possible to make adjustments to the forecast and see the results, whilst also giving a data trail showing what changes were made and by whom. The ability to review different scenarios, whilst still retaining the original data, makes this solution unique from the standard cash forecasting systems.

This can lead to greater understanding of the drivers within a company’s cash, good visibility of the behaviour of an individual counterparty, more accurate ability to determine when additional funds are needed, together with the potential to map the effects of changing individual items and seeing their outcome to the complete forecast.

In conclusion, this is an original solution to an age old problem for cash management.

treasuryXL would like to thank Cashforce for illustrating their solution at this seminar. If you have any questions, please feel free to contact us.

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