Take a closer look at the value of cash flow forecasting

cash flow forecastingEffective cash flow planning can help your business thrive

According to Keith Bergman, Managing Director at Ledgewood Advisory Group, “Cash forecasting is the art of estimating the future cash position. It ensures the right amount of cash is available when it is needed.” Simply put, efficient and accurate cash flow forecasting allows firms to achieve full control of their budgets and capital structures, helping them to meet their strategic objectives.

During last week’s live web seminar, “ Raising your cash flow IQ to drive growth: Visibility, predictability, and control”, we looked at the primary components that allow companies to build a forecast, as well as some of the common mistakes that most organizations make.

8 common challenges when forecasting

As an employee of a company that has begun to investigate CPM software, you will definitely want to know if you are facing some of the following challenges in your current forecasting efforts:

  1. Lack of access to current and accurate data
  2. Poor communication with other departments
  3. Difficulties obtaining data from banks in a timely manner
  4. Insufficient historical data to predict future performance
  5. Absence of variance analysis between forecasted figures and actuals
  6. Forgetting to include tax liabilities
  7. Neglecting seasonal and cyclical trend adjustments
  8. Inability to aggregate data as needed

If you missed the event, we highly recommend that you watch the recording, which we will post on our Resource Library in the coming days.

Learn from a business leader

As a special treat, you’ll also learn about PARTEQ Innovations’ journey to cash flow planning and forecasting automation. Paul Vickers, VP of Finance and Administration, walks through his company’s transformation into a national brand—a transition enabled by implementing robust Corporate Performance Management software, giving him and his organization well beyond what his traditional work with spreadsheets could provide.

Vickers explains, “The Finance Department should be a value-added department, not a necessary evil, money-draining department required for doing business.” In order to achieve this shift, you must “raise your cash flow IQ” and leave behind the traditional methods of cash flow forecasting, moving into an environment where you maintain full control of your cash destiny.

If you’re interested to see how we developed our Prophix 11 CPM software to address this and many other challenges, click here to learn more.




Your business is evolving. And the way you plan and report on your business should evolve too. Prophix helps mid-market companies achieve their goals more successfully with innovative, cloud-based Corporate Performance Management (CPM) software. With Prophix, finance leaders improve profitability and minimize risk by automating budgeting, forecasting and reporting and puts the focus back on what matters most – uncovering business opportunities. Prophix supports your future with AI innovation that flexes to meet your strategic realities, today and tomorrow. Over 1,500 global companies rely on Prophix to transform the way they work.