Our business partner RedPeaks supports you in developing an effective framework that enables accurate and ongoing cash flow forecasting. They work with you to identify the most suitable solution for your daily needs, combining established methodologies with innovative approaches, including artificial intelligence. RedPeaks also ensures careful management of all stakeholders throughout the implementation phase of your project.
Your challenges
You want to improve your cash management. To do so, you need to anticipate your inflows and outflows more accurately, as well as developing new metrics that are more appropriate for your sales cycle. Finally, you want an efficient and easy to use solution that does not require too much manual intervention.
You seek better control of your funding needs . You want to assess your short-term financing requirements by type, amount and duration. You need to manage your financial covenants and optimize your interest charges.
You want to strengthen your group’s cash generating culture. To improve your cash flow forecasting, you need to enlist the support of colleagues outside of finance. In return, they will get reports that are more accurate on debtors, creditors and inventory.
Key points
Whether you are starting a new project or seeking to improve on existing process, you will need to follow a number of steps:
- defining the format of your forecasts (direct or indirect) at the parent company level, as well as the desired forecast horizons
- identifying and prioritizing the subsidiaries to be included within the scope of the cash flow forecasting process
- implementing the chosen method within each subsidiary by providing tailor-made training for the various target audiences
- selecting and deploying a suitable forecasting tool.
To make a success of your project, you require technical expertise, particularly in terms of modeling cash flow forecasts. You must also have a good understanding of the software vendors’ solutions and their ability to provide you with a cash flow forecasting tool that is tailored to your needs. Finally, to achieve internal buy-in to what will be a cross-functional project, you must manage the project effectively and adapt your communication to the different cultures of your target audiences.
Our recommendation
For cash flow forecasting projects, we rely on our trusted partner RedPeaks, which delivers comprehensive, end-to-end support through experienced cash management experts across Europe.
RedPeaks supports you in designing and implementing the most appropriate organization and tools to ensure reliable and sustainable forecasting, regardless of your business environment. Their support includes:
- Defining functional and technical requirements, and drafting specifications for the selection of a cash forecasting solution
- Designing the target organization and relevant reporting to strengthen your cash culture
- Developing tailored tools and ad hoc models, including the integration of advanced technologies such as artificial intelligence
In addition to the diagnostic and selection phases of a cash flow forecasting system, RedPeaks also supports you throughout the implementation and deployment of your chosen solution.
Particular attention is paid to meeting project timelines and budget, while ensuring strong stakeholder engagement and buy-in across your organization.