Why Is Forecasting With Traditional “Solutions” So Difficult?
There are numerous problems with legacy cash-flow management software and cash-flow analysis software.
First, dependence on bank data timelines contradicts the need for real-time analyses: You need data on your schedule, not theirs. Many companies have developed workarounds for these time limitations – ways to get “good enough” treasury forecasts despite having day-old, or older, data. This challenge is particularly difficult for global companies working with global banks. The treasury team creating the cash forecast may be based in New York City, but a material number of their banks are in APAC so they’re sent bank files during APAC business hours. By the time the New York team wakes up to create the forecast, the report is already stale.
Second, there are many sources of data for a forecast – many faucets to the sink. The incoming data must be imported/exported manually, reducing process speed and increasing errors. Without drill-down abilities and with treasury team resources already strained, spreadsheets cannot support the deep data analyses treasury teams must conduct for timely, accurate forecasts and reporting. Since all this data lives outside your ERP, forecasting becomes even more cumbersome.
What Are the Consequences of Inferior Data Access for Forecasting?
Cash-flow forecasting software without real-time data means you don’t have the accuracy necessary for precise cash-flow analysis and forecasting, exposing treasury to false estimates that lead to bad scenarios and consequences: excess cash sitting idle, or insufficient funds to meet needs, increasing interest payments. Without precise, real-time cash-flow forecasting software, corporations may face higher borrowing costs or insufficient investment returns.
Why Should You Choose FinLync for Forecasting?
Real-time data is better than stale data.
FinLync improves upon cash-flow projection software in many ways. Constant bank connectivity automatically ensures access to current available cash balances. As a native ERP application, FinLync leverages your internal systems to provide the most accurate forecasted cash-flows. Our apps are lightweight, imposing minimal demands on budget and IT, making them easy to implement and maintain. Finally, FinLync’s cash-forecasting software increases the value of the data and systems you already have, increasing the ROI of your ERP.