Cash flow forecast
Cash flow forecast is one of the most important tools for measuring the success and profitability of a company. Cash flow forecast gives a good overview on future cash flow, and it can be used as a basis for designing the actions needed to reach business goals.
The best tool for monitoring and control of cash flow is the 12 weeks’ rolling cash flow forecast in Revise EPM application. Week-level forecast provides a realistic overview of future cash flows, providing time for responding to changes, so that unnecessary surprises in business are avoided. Company stakeholders especially appreciate a realistic overview of the company’s future cash flows.
Fundamental data automatically included in calculating the cash flow forecast:
- Sales receivable from the profit forecast, based on turnover or average payment period (separate settings for factoring)
- Project installments can be included from project-specific cash flow forecasts
- Accounts payable are included from the profit forecast, based on turnover or average payment period.
- Tax account payments (VAT and social security payments) are included automatically from debt accounts in the balance sheet.
- Changes in accounts receivable and debt capital, repayments and interest are included from debt tables.
Cash flow forecast closing balance is updated to a specific account in the balance sheet forecast.
With the application’s systematic process and automatization, cash flow forecast can be implemented quickly and effortlessly.