• The most important topic on the mind of finance teams across the world is cash and cashflow forecasting.
  • Forget budgeting for now, the situation is too dynamic to set a budget.
  • Developing a rapid response cashflow forecast is essential to keeping up with the changing environment and for informing your decision makers.
  • Join our upcoming webinar on Thursday April 9th at 11 am to come together and learn how other Adaptive Insights users are dealing with cashflow forecasting.

In normal conditions, metrics such as Revenue, Gross Margin and Net Profit are likely to be higher priority measures of performance for your organisation.  However, in times like these, it is more likely to be the availability of cash that becomes the most critical factor for survival.  It is insufficient cash on hand that is ultimately going to be the most debilitating for many organisations.

It is therefore vitally important that an accurate cashflow forecast is prepared regularly during these uncertain times.  Whilst a monthly cashflow forecast may be sufficient in normal times, we are strongly recommending that clients consider weekly, if not daily, cashflow forecasting during this dynamic period. The drivers for cashflow forecasting are currently changing on a daily basis as governments respond with new restrictions and policy statements. Your customers and suppliers will also be adjusting their behaviour to the current circumstances.  These changes will directly impact your cashflow.

We are encouraging all our clients to make sure they have a robust cashflow forecast model.  The assumptions and drivers for your cashflow forecasts should be updated as the circumstances change based on the best knowledge that you have on hand at any point in time.

Unfortunately, many organisations are having to make some really tough decisions that directly impact the lives of people within their organisation as well as their customers and suppliers.  So it is vitally important that these decisions are well considered with accurate modelling to fully understand their impact.  A well prepared cashflow forecast model should enable scenario analysis so the outcome of strategic decisions can be compared and fully understood.

We sympathise that you and your organisation are likely to be going through some difficult times.  We want to do our very best to support you the best way we can.  As such we encourage you to join us for a webinar to bring together the Adaptive Insights user community to discuss how Adaptive Insights can be used to create a rapid response cashflow forecast.