With many businesses shutdown or operating on a reduced schedule, the need to forecast revenue and cash flow is more important than ever. The uncertainty of when the economy will reopen and how fast it will recover is a major concern for your company’s stakeholders.
Management, shareholders, creditors and suppliers need to know your company’s outlook for revenues and cash flow to help navigate the uncertain business environment. The stakeholders need this information more frequently than under normal business conditions, because economic conditions are changing rapidly and many companies are experiencing cash flow problems.
Forecasting cash flow can be very time consuming if you don’t have software tools to analyze your accounts receivable and collections data. Manually sorting through accounts receivable and estimating cash flow based on rough estimates is difficult and diverts resources from collections. This can be especially concerning if it must be done frequently.
Using BI data to generate cash flow forecasts for stakeholders can be the solution to this problem. Here are some of the advantages of using BI data.
Using BI data allows stakeholders to regularly see cash flow forecasts. Frequent reporting of what is expected for cash flow is very important. Business conditions are changing rapidly and many companies must closely manage their cash flow to maintain good relations with creditors and suppliers.
Decisions need to be made, based on expected cash flow, on who can be paid and how much they can be paid. A triage approach to cash management needs frequent cash flow reporting to work effectively.
Cash flow reports using BI data can be automatically sent on a regular basis. This eliminates the need to try to remember when reports are needed, and manually schedule reports to be run.
Collection Team Resources
Using BI data to generate cash flow forecasts frees up your collection team to concentrate on collecting past due accounts receivable to accelerate your cash flow. The time and work that would otherwise have to be spent on cash flow forecasts can be prioritized to collections and cash flow.
Many companies will need frequent cash forecasts for the foreseeable future to help them closely manage their cash resources through the economic recovery and stabilization. BI data can help you to generate cash flow forecasts for your company’s stakeholders.
Cloud-based credit and collection platforms provide the solutions you need to take full advantage of BI data for cash forecast reporting.
Lockstep Collect is a market leader in cloud-based credit and collection platforms. Lockstep Collect can help you use BI data for cash forecast reporting.
If you would like to learn how you can benefit from reporting using BI data, please contact Lockstep Collect at www.lockstep.io.