Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
While small businesses must handle day-to-day tasks—like managing...
Benefits administration can be a game-changer for small...
November 12, 2021
With pandemic-induced disruptions amplifying the need for more effective cash forecasting, an increasing number of businesses are adopting AI and machine learning to sharpen their forecasting capabilities.
Enterprise deployment of these modern technologies for cash flow forecasting will expand by a whopping 450% over the next two years, predicts the 2021 Cash Forecasting & Visibility Survey Report from GTreasury and Strategic Treasurer.
Meanwhile, the survey of almost 250 enterprises spanning multiple industries found that a vast majority of enterprises still rely on traditional manual processes and techniques for cash flow forecasting. A staggering 91% of respondents report still using Excel spreadsheets as one of their primary forecasting tools.
In comparison, 25% report they have a modern digital treasury platform in place and 28% utilize enterprise resource planning software. Only 5% of respondents use a dedicated forecasting platform, while 15% use financial reporting and analysis or budgeting tools to support cash forecasting.
The report also revealed that a meager 6% of respondents are currently leveraging AI/ML tools for projecting cash flow, but that figure is expected to reach 27% by 2023 based on enterprises’ reported plans.
Respondents also signaled an upward trajectory for regression analysis. Presently, only 12% of surveyed enterprises use the method for financial analysis and forecasting, but that number is expected to climb to 29% by 2023, and 43% of respondents indicate they use or will use regression analysis at some time in the future.
Finally, in reference to variance analysis — another technique that businesses often resort to for managing finances —here too companies largely still have manual processes in place, the survey found. Some 57% of respondents said they perform variance analysis only manually, while another 19% reported it was mostly a manual effort. One-fifth of enterprises said they avoid manual effort by performing no variance analysis whatsoever. The remaining 5% report having fully automated variance analysis processes.
Despite currently relying on traditional cash flow prediction tools, an increasing number of enterprises are ready to pursue new strategies and technologies to enhance their efficacy in managing and forecasting cash flow forecasting as well as overall liquidity.
Read the complete 2021 Cash Forecasting & Visibility Survey Report from Strategic Treasurer in conjunction with GTreasury.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...
Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...
Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...
Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...
In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...
The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...
Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...
Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...
Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...