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Mastering Cash Flow Management with Enterprise Planning

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In the ever-evolving landscape of financial planning and analysis (FP&A), effective cash flow management stands as a cornerstone for organizational success. A recent episode of FP&A Done Right – The Podcast on cash flow modeling delves into this critical topic, exploring how strategic planning can revolutionize the way finance teams approach cash flow forecasting and management.

The Imperative of Accurate Cash Flow Forecasting

Cash flow forecasting is more than just predicting inflows and outflows. It’s about enabling strategic decision-making and ensuring financial stability. This episode emphasizes the challenges organizations face with traditional forecasting methods, such as reliance on spreadsheets, which can lead to errors and inefficiencies.

Leveraging Company-Wide Planning for Enhanced Forecasting

Company-wide planning software is a powerful tool to address these challenges. We discuss how its real-time data integration and user-friendly interface allow finance teams to create more accurate and dynamic forecasts. Organizations can automate data collection and analysis, which enables finance teams and senior management teams to respond swiftly to financial changes and make informed decisions.

Core Principles for Effective Forecasting

  • Real-Time Data Integration: The importance of having up-to-date information for accurate forecasting.
  • Automation and Efficiency: How automating processes reduces errors and saves time.
  • Strategic Decision-Making: Utilizing accurate forecasts to inform business strategies and investments.
  • Scalability: Adapting forecasting methods to accommodate organizational growth and complexity.

This episode of FP&A Done Right provides valuable insights into modernizing cash flow management through technology. By adopting company-wide planning software, organizations can enhance their financial forecasting capabilities, leading to better strategic decisions and financial health.

For a deeper understanding, listen to the full episode.

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Modern Accounting: Using AR Automation to Boost Cash Flow

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This is a guest blog post from our partner BlackLine, explaining how to gain cash flow confidence with AR automation.

Table of contents

Put simply, a significant reason businesses are struggling right now is a lack of working capital. Preserving and maintaining sufficient cash flow is crucial for the stability and success of a business. When it’s reduced or restricted, businesses have less ability to perform, pay, and invest, meaning many turn to costly borrowing.

Businesses with a stronger cash culture are more likely to make it to the other side. Research from McKinsey shows that businesses that prioritize cash flow are more capable of recovering faster after disruption, especially in a post-pandemic world.

It all starts at the top. And by making cash a priority, CFOs are setting the tone for business success.

Disruptions, Borrowing & Inefficient Processes

Time is of the essence when it comes to achieving business success. But because traditional processes aren’t typically time efficient, finance leaders are challenged with aligning and unifying their cash flow systems. The longer that cash is unreachable, the older the debt gets, and the likelihood of receiving a payment in full is reduced.

You might think taking the tried-and-tested route of borrowing will work better for your business. While that may seem like a good idea at first, rising inflation and stringent lending conditions can create complications later down the line. Easy fixes like this only temporarily bridge the gap for businesses lacking cash—and you can end up paying through the teeth for it.  

The pressure brought on by the biggest disruption of all—COVID-19—is urging finance leaders to make better, more confident, and strategic business decisions. But to do so, greater business intelligence is required.

According to the Hackett Group financial report, finance executives consider it somewhat likely that innovation will fundamentally change the way financial functions work, yet relatively few leaders are acting on it currently. 

Without using AR data in the right way, businesses are less capable of understanding and categorizing customers, debtors, and their cash flow.

Raise the Bar With AR Automation

In 2019, PWC calculated that $1.5 trillion dollars was held hostage on global balance sheets. Without access to that working capital, CFOs have less opportunity to drive business success. 

But there’s a solution: get your cash flow moving to a different beat.

By implementing AR automation, you can unlock working capital with ease and achieve greater visibility into your cash position, keeping your business machine well-oiled and functioning to its full potential.

What’s more, you can surface critical customer data that your business can use to transform its cash culture for the better—and enable you to make more strategic business decisions that have a company-wide impact.

Plus, with greater cash availability comes greater financial flexibility. AR automation means you won’t have to rely on costly borrowing thanks to increased access to working capital from within. This also allows you to build financial resilience to cope with whatever is around the corner.

The market’s moving, and it’s time for you to move with it. With BlackLine AR automation by your side, you have the tools to boost your cash flow and improve business outcomes.  

This blog post was originally published on the BlackLine blog.https://www.blackline.com/blog/how-to-gain-cash-flow-confidence-with-ar-automation/

Read more Modern Accounting blogs:

Modern Accounting: Changing the Culture in Accounts Receivable

Modern Accounting: Intercompany Accounting

Modern Accounting: Accounting in 2022

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