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Understanding Cash Flow Plan a Scenario

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Scenario Analysis

In business, the best way to face uncertainty is to be prepared with the information needed to effectively respond to potential situations.

With ForwardAI cash flow forecasting software, you can create Plan a Scenario and plan for critical uncertainties that may affect your business’ cash flow in the future. Also, you can leverage data to compare and make better-informed financial decisions to take your business to the next level. Sounds simple, right? The good news is, it can be!

What Are Cash Flow Plan a Scenario? 

Plan a Senario are created by modeling different hypothetical situations to see how these may affect your future cash flow.

What if you took on a business loan? What if you opened a new office? What if you hired more staff? With Plan a Scenario, you can evaluate different situations and predict their effect on your business’ goals and future cash flow.

Although the result is still dependent on your historical transactions, but with the additional variable of these hypothetical assumptions. Being able to build multiple scenarios allows you to predict whether the changes in the business decisions will be ideal or worst for your future cash position.

The perfect use of scenario analysis will mean you are fully prepared for any potential problem business can throw at you.

Moreover, protectively maintaining positive cash flow means having a tool at your disposal to provide an extremely accurate picture of your future cash position. This is where ForwardAI’s Plan a Scenario helps you shine.

How Do ForwardAI’s Cash Flow Plan a Scenario Work?

Plan a Scenario can be a powerful resource to help you define business’ critical uncertainties and create multiple scenarios to see their impacts on future cash position. Knowing what will happen to cash flow in different situations means you can make smarter decisions to prevent liquidity shortfalls.

Creating a scenario in ForwardAI is super easy.  You can seamlessly create scenarios, add new data, edit old ones,  understand actual and projected cash flow, and more.

These are some of the key benefits you can get from simulating scenarios in ForwardAI:

Identify Your Critical Uncertainties

Economic conditions, illness, shifts in consumer behavior, and political policies are some of the many future uncertainties that may affect your company. To begin with, you need to analyze how these uncertainties will affect your cash inflows and outflows in the future.

Create a Range of  Plan a Scenario

Whether you are using our templates for planning for a loan, a projected income, an employee incentive, or a special discount, you are able to seamlessly develop multiple scenarios for the future with ForwardAI’s comprehensive planning framework.

Compare and Make Well-Informed Decisions

Finally, analyze and compare different cash flow scenarios to make important investment and strategic financial decisions. Our advanced cash flow management tool can interpret the likely financial impact of specific events with greater precision. You can share a cash flow forecast with your advisor, discuss the direction and improve the quality of organizational decision making.

Better Future Planning

Scenarios can be  a powerful tool that helps advisors and SMEs to get a glimpse of cash position and expected returns when planning for the future. Cash flow is one of the biggest challenges for small and medium-sized businesses and Cash Flow Plan a Scenario helps them keep strict track of their money using informed calculations

Estimate the Effects of Business Change

You can avoid potential losses and poor cash flow problems by analyzing the events and situations that may lead to negative results. Scenario Analysis can prove to be beneficial if you are looking to make changes to your business – launching new product lines, buying an office, leasing new equipment, taking on new staff, etc.

The Bottom Line – Why Should You give ForwardAI a Try?     

  • Allows you create multiple scenarios for the future at the click of a button.
  • Allows you to see the impact of a scenario on your cash flow in real-time with simple and easy to understand calendar and chart.
  • Helps you seamlessly estimate the money you expect to flow in and out.
  • Gives you the power to analyze and compare different cash flow Plan a Scenarios at one place.
  • Helps you make better financial decisions and plan for potential problems before they cause a crisis.

Signing up for ForwardAI is easy! Simply create your free account, connect your business and run your cash flow forecasts.

The information in this article is not financial advice. It does not replace the expertise that comes from working with an accountant, bookkeeper or financial professional.


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