{"id":365,"date":"2021-06-05T14:07:36","date_gmt":"2021-06-05T14:07:36","guid":{"rendered":"https:\/\/www.forwardai.com\/blog\/?p=365"},"modified":"2023-01-03T11:11:37","modified_gmt":"2023-01-03T11:11:37","slug":"5-reasons-to-use-forwardai-for-your-cash-flow-forecast","status":"publish","type":"post","link":"https:\/\/www.forwardai.com\/knowledge-center\/blog\/5-reasons-to-use-forwardai-for-your-cash-flow-forecast\/","title":{"rendered":"5 Reasons to Use ForwardAI for Your Cash Flow Forecast"},"content":{"rendered":"\r\n

\"cash<\/p>\r\n

Few business metrics are as important \u2014 or insightful \u2014 as cash flow. It tells you if you\u2019re bringing in more than you\u2019re spending and how efficiently you\u2019re operating.<\/p>\r\n\r\n\r\n\r\n

If you look closer there\u2019s even more to see, such as how well you\u2019re poised for future growth. Especially if you make a cash flow forecast a routine part of your financial analysis.<\/p>\r\n\r\n\r\n\r\n

ForwardAI\u2019s\u00a0insights and analytics<\/a><\/strong>\u00a0demystify cash flow projection. We\u2019re a cash flow superhero. What was once a time-intensive foe is now just a few simple clicks. Our futuristic\u00a0forecasting cash flow forecasting software\u2019s<\/strong>\u00a0interactive dashboard provides a detailed breakdown of key financial variables \u2014 using the current financial data in your accounting software.<\/p>\r\n\r\n\r\n\r\n

What can you learn or take away? Here\u2019s our list of the top five things\u00a0every business gains<\/a><\/strong>\u00a0from using our intuitive cash flow tools:<\/p>\r\n\r\n\r\n\r\n

1. Know your cash flow<\/strong><\/h2>\r\n\r\n\r\n\r\n

A dollar\u2019s a dollar. There\u2019s a reason why cash flow is an unbiased and\u00a0universal measure<\/a><\/strong>\u00a0of business performance.<\/p>\r\n\r\n\r\n\r\n

It\u2019s a make-or-break metric for businesses of every size \u2014 but it\u2019s particularly crucial for small- and medium-sized enterprises (SMEs) whose survival depends on the income earned from operational cash flow.<\/p>\r\n\r\n\r\n\r\n

When these businesses fail, more than half, 60% cite issues with\u00a0cash flow<\/a><\/strong>\u00a0as a root cause. Furthermore, most SMEs only have enough\u00a0working capital<\/a><\/strong>\u00a0on hand to cover 27 days of expenses. However, businesses who monitor cash flow on a monthly basis have an 80% survival rate.<\/p>\r\n\r\n\r\n\r\n

The facts\u00a0speak for themselves<\/a><\/strong>. Keeping an eye on your cash flow shows you what\u2019s actually going on within your business. Your cash flow statement and cash flow forecast tell you: where the money coming in, where\u2019s it\u2019s going out, and the rate at which it\u2019s moving in either direction.<\/p>\r\n\r\n\r\n\r\n

ForwardAI\u2019s cash flow forecast and analysis helps you see the patterns in your cash flow \u2014 showing you what\u2019s happening now and providing a solid indication of what will happen in the near future. It\u2019s like looking both ways before you cross the street. If you take the time to assess your current situation, you\u2019re much less likely to get hit by that bus you never noticed.<\/p>\r\n\r\n\r\n\r\n

2. Identify strengths and weaknesses<\/strong><\/h2>\r\n\r\n\r\n\r\n

Spreadsheets only tell a part of your company\u2019s story \u2014 especially if you\u2019re a visual learner, as most people are. Plus, few spreadsheets can show you the true story of your company\u2019s efficiencies or clearly illustrate your revenue cycles. After all, the best way to notice a pattern is to see it mapped out in graphs and charts \u2014 rather than numbers and percentages.<\/p>\r\n\r\n\r\n\r\n

Routinely performing a\u00a0cash flow forecast and analysis<\/a><\/strong>\u00a0can help you see:<\/p>\r\n\r\n\r\n\r\n