Hot on Cash forecasting

Every company should have access to an easy-to-use and fast-to-deploy cash forecasting solution. This Hot on Cash Forecasting blog will give you actionable insights and tips how to get your cash forecasting in shape fast and cost effectively.

I love efficiency and focusing on the essentials and hate hard-to-use software that I was forced to use in my work on a daily basis. As a protest against this, I started Exidio Ltd. in 2000 to create Trezone, the cash forecasting solution that was built from the ground up to be easy to use and fast to deploy.

Back then, this was a revolutionary idea in cash forecasting. And, rather surprisingly, it still is.

In the previous entry I proposed a light and easy way of getting the blessing of the top management for cash flow forecasting improvement. The next step is ensuring the buy-in of your own team and the business units. Internal resistance may cause significant delays and increase the cost of your cash forecasting initiative.
Fixing your cash flow forecasting is not a technically daunting task. You need a good plan, a fast-to-deploy cash forecasting solution and integrations into your operative and bank systems. It will not take more than a few weeks unless you make the mistake of turning the initiative into a traditional project. But before starting you would need to take care a few things:
You may think a cash forecasting development initiative is just another IT project that requires a truckload of money, a platoon of people and months of calendar time. You may also suspect that sophisticated cash flow forecasting solutions are for large multinationals with significant resources to see such projects through. The good news is putting your cash forecasting into shape does not require you to start an IT project.
When you start improving your cash forecasting, concentrate on solving that particular problem, nothing else. Trying to solve all problems with a massive development project is a very bad idea.
You may already be forecasting your cash flows with Excel or a similar tool. In this case, you are likely to have encountered problems with forecast accuracy, data integration, and forecast consolidation. These experiences may have led you to believe that it’s impossible to make reliable cash forecasts in your company. You may also believe that dedicated cash forecasting solutions are too expensive for you. The good news is that you are wrong.
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Timo Hämäläinen
My name is Timo Hämäläinen and I am the CEO of Exidio Ltd. I have worked with the challenges of cash forecasting for the past 25+ years.