The 5 most important questions to ask for a successful cash flow budget !

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The 5 most important questions to ask for a successful cash flow budget !

Will you be ready for the 2018 budget closure ?

For financial officers, the last quarter of the year means preparing closures and fighting their way through the budget period. At this busy time, take a moment to ask yourself some important questions about your current predictive model.

budget trésorerie cashsolve

We’ve prepared a list of 5 key points to consider:

1. How good is your ability to predict?

To draw insight from your data, you need to know which information sources to use, and how to transform that information into projected cash flow data. This requires great precision, a solid understanding of all the available information, and calculations that are often very complex.

Are you satisfied with your current method? How much time do you spend collecting your data? Is that data usable?

2. How agile are you?

Agility is the art of managing your data flexibly, with no need for tedious integration or involvement from multiple departments. You need to be able to generate potential forecasts easily, archive them, and compare them with actual results. In short, you need to analyse your data instead of juggling it clumsily.

Do your current tools provide the agility you need? Do you feel that there’s enough time available for analysis?

3. How responsive are you?

Any change within your group can have an impact on your future cash flow. Your ability to react and respond is directly correlated with your data refreshment process: continuous monitoring of your forecast is the only way to anticipate tomorrow’s needs.

How frequently are your forecasts updated? What level of detail do you drill down to?

4. How ready are you to change and evolve?

It’s not easy to set one model aside – especially if you designed it – and switch over to an untested approach, even if you know it will probably be better. It depends on your resistance to change, on internal factors related to your other services, and on the challenges you want to take on.

How much importance do you assign to the cash aspect of your business?

5. What’s your vision of an ideal tool?

At a restaurant, you wouldn’t hesitate to order exactly what you like best. Bring the same attitude to thinking about your ideal cash forecasting tool. Let’s see, I think I’ll take: cutting-edge analytic abilities with comparisons of real and projected results, drill-down capabilities, advanced forecasting and simulation features, a pleasant user experience, etc.

Did you give mixed answers to these 5 questions? If so, you’re not alone: 38% of CFOs want to integrate cash into their forecasting system.* They’re unhappy with the amount of time spent collecting data and with how it cuts into analysis time.

* According to the “CFO Priorities 2017” survey by PwC-DFCG

What specific points do you want to improve?

CASHSOLVE is a SaaS platform for managing cash flow, WCR and ratio forecasting. We work with corporations, SMEs and mid-cap companies to improve their financial performance.

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