Optimizing a company’s cash flow forecasting is essential to improve the organization´s financial performance.
Most often, organizations would need specialized technology in order to support its efficiency gains. Through a corporate performance management solutions / technology like Performance Canvas by DSPanel, the manual nature of data collection and complex reporting and analysis is minimized. This will give instant transparency in the Cash flow for budgeting and forecasting purposes.
Why put much attention on cash flow forecasting and management?
Simply put, the clearer a business is in knowing where its cash is going and what its cash needs are at a given period, the better it can control the ship during unforeseen events.
That said, it is impossible to track, manage, and analyze cash without an effective cash flow forecasting and management process and tool.
Without a good process and a robust system to help facilitate cash flow forecasting and management, the finance department would struggle.
As a business of course, you want your company to have lesser unused cash stored in the corporate accounts specially with the current interest rates. Further, it is not unlikely that you will pay interest fees for external capital or worse lose out on interest earnings.
There are of course a variety of reasons why strong cash flow forecasting and management practices are important in running an organization.
A few of them are:
- To make sure the business has sufficient cash in appropriate currency to meet obligations
- To make sure your business never has to use internal resources in case of another financial meltdown
- To determine how to optimize the business´ available cash
- To reduce the costs of having an unnecessarily high level of liquidity
- To always prepare the business in case a good investment opportunity arises or in case a crisis is looming
Streamlined Process through Utilization of CPM Technology
Corporate Performance Management solutions like Performance Canvas by DSPanel is a unified financial system that streamlines and automates reporting and analysis, budgeting and planning, forecasting, financial consolidation, AR/AP, and profitability analysis in a simplified and user-friendly platform.
Performance Canvas by DSPanel primarily functions by incorporating best practices in budgeting and planning, reporting and analysis, forecasting, and consolidation into the solution.
Performance Canvas by DSPanel allows organizations to do short term and long term cash flow forecasting, comparison of actuals vs budgets, drillable reporting, allocations, driver-based budgeting, rolling forecasting, and many more.
To know more about how this modern CPM technology incorporates best practices in cash flow forecasting and management, visit www.performancecanvas.com or email info@dspanel.com to see a free online demo.
DSPanel offers cutting edge technology platform for business analytics, planning, and visualization. DSPanel designs, builds, and operates with the end users in mind. Performance Canvas was created by DSPanel to answer the unarticulated needs of the market not addressed by previous available solutions. With Performance Canvas, information is transformed into valuable business insights for the business executives to utilize in their decision-making process. DSPanel currently has over 2500 organizations deploying their solutions.
