Cash Flow Forecasting

							13th September 2011




  Cash Flow Forecasting
  Warwick Haycock, Paul Ruddle, Dave Greaves
Agenda

• What is Cash Flow Forecasting?

• How can we make it quick and easy?

• Product Demonstration

• Questions
The Smart Business Suite


                           Collaborative
                           Planning

                           OpenPlanning

                           Purchase Card
                           Reconciliation

                           Cash Flow
                           Forecasting
 The Principles


Cashflow forecasting … helps you to plan borrowing
and tells you how much surplus cash you're likely to
have at a given time. Many banks require forecasts
before considering a loan.

The forecast is usually done for a year or quarter in
advance and divided into weeks or months.

The forecast is a live entity. It will need adjusting in
line with long-term changes to actual performance or
market trends.
   The Distinction

• Budgeted Cash Balance
  – Balance basis
  – Forecast from budgeted movements
  – OpenPlanning & Collaborative Planning
• Cash Flow Forecast
   Transaction basis
   Forecast from actual and budgeted
   CFF, spreadsheets or standalone module
    The Challenge

• Each organisation is unique
• Businesses get limited funding
• They operate within banking limits & covenants
• Customers and suppliers don’t play by rules
• Data is spread across multiple business systems
• Spreadsheets have risk
  – No version control and complex embedded rules
  – No real concept of times and dates
  – High maintenance and no security
• Managers need flexible views and ‘what-if’ options
Collecting Data


 Integrated    Interfaced    Manual

 Financial     Operational
                               Other
Back Office     Systems




    Cash Flow Forecasting
    Cash Flow Forecasting




The forecast shows predicted inflows and outflows
by category and timescale with a graphic summary
           The Cash Flow


 INFLOWS
 Open A/R Invoices
 Scheduled Regular Invoices
                              EXTERNAL SOURCES
 Project Billing
                              Order Processing
 Standing Orders
                              Ticketing/EPOS
 Retentions
                              Procurement




Bank
Balances



     OUTFLOWS                 MANUAL
     Open A/P Invoices        Tax Provisions
     A/P Recurring Invoices   Acquisitions
     Purchase Orders
     Commitments
     Standing Orders
     Retentions
           The Cash Flow

 INFLOWS
 Open A/R Invoices
 Scheduled Regular Invoices
                                  EXTERNAL SOURCES
 Project Billing
                                  Order Processing
 Standing Orders
                                  Ticketing/EPOS
                                                             INFLOWS
 Retentions
                                  Procurement
                                                             G/L Forecast



                         LIMITATIONS               CUT-OFF
Bank                     & RULES                   LOGIC                    FORECAST
Balances



     OUTFLOWS                     MANUAL                OUTFLOWS
     Open A/P Invoices            Tax Provisions
     A/P Recurring Invoices       Acquisitions          G/L Forecast
     Purchase Orders
     Commitments
     Standing Orders
     Retentions
Data Restrictions

                    Divide your data
                    - By ledgers
                    - By customers
                    - By documents
Data Rules
Templates
Timelines
   Creating Scenarios

 Multiple Companies – Multiple Banks
 Shaping the data
   Restrictions
   Rules (including removal)
 User defined templates
 User defined timelines
 Acquisition and merger testing
Product Demonstration
  Benefits Summary


• Integrated data with rapid extraction
• External feeds & manual intervention
• Multi-Company & Multi-Bank
• Multiple timescale views
• User-defined filters and rules
• Single, accurate cash position
• Rapid, informed decision making
        Cash Flow Forecasting
           Conference                            User Group

                       Focus Group                             Conference

                                         Focus Group           Beta Program               Focus Group




          2011                                                  2012                               2013
                         V1.7
                   •     MS Excel Rules
                   •     Summary totals                                  V2.0
                   •     Period Movements                           •    Input Required
                   •     Cut off Logic
                   •     Import Multi Select
                   •     Improved Reporting


                                          V1.8
       V1.6                          •    Maintenance
   •   Support MS SQL                •    SQL 2011
   •   Branding Update               •    OpenEdge 11
   •   Bug Fixes                     •    Rules Drill Down
                                     •    Analysis Code Selection


ABS Product Roadmap                                                     Contents may change without notice
 Future Benefits


• Version 1.7 (EOY/2011)
  – Imported data will be subject to filters & rules
  – Imports can be multiple/simultaneous
  – Parameter provided for data ‘cut-off’ dates
  – New totalling, colour options and grid view options
  – GL Budget apportionment logic
  – Basic reports will be improved
• Version 1.8 (Q2/2012)
  – Rules will be easy to read/audit
  – Data extractions will be sensitive to analysis codes
Any Questions
13th September 2011




  Thank you