Top Real-Time Cash Forecasting Tools | Payference

The fact that businesses rely on cash flow to stay afloat has shaped business models and strategies since the days of the trade routes. Back then, forecasting the weather was as critical to the success of a business as cash forecasting was. But today, having the right tools for real-time cash forecasting is by far more important than knowing how hot it’s going to get. 

According to a 2019 survey of 225 senior financial and treasury executives, improving cash forecasting is the top issue for the immediate future. They want their outcomes to be more accurate and the process to be more efficient. 

One of the biggest challenges in cash flow forecasting is that it’s based on historical data, which can be inaccurate or out-of-date by the time you need it. That’s why effective tools for real-time cash forecasting are essential for businesses that want to stay ahead of the game.

Keep reading to learn about the top real-time cash forecasting tools (hint: spreadsheets didn’t make the list) and the benefits of using a platform that uses machine learning (ML) and artificial intelligence (AI).

Real-Time Data is Key

Real-time cash forecasting relies on having access to up-to-date information. This data can come from a variety of sources, including your accounting software, banking information, invoices and purchase orders.

The first step in real-time cash forecasting is to connect all of your business’s financial data sources. This way, you’ll have a single source of truth for your cash flow forecast. There are a few different ways to do this, but one of the most effiecient is to use cloud-based accounts receivable automation software. These tools for real-time cash forecasting allow you to connect your various bank accounts, invoices, and purchase orders and keep the information all in one place for easy access. 

AR automation software means that instead of having your finance team spend days gathering data from disparate sources and preparing reports for presentation, they’ll be able to collect what they need in just a few clicks. Furthermore, because there will have been incoming and outgoing transactions since the point in time that the data was gathered, the reported cash positions aren’t really all that accurate. And you can’t quickly and easily determine just how inaccurate they actually are.

Once your data is connected, you can start to create a cash flow forecast. This forecast will give you a clear picture of your company’s inflows and outflows in real time, so you can make informed decisions about how to manage your cash flow.

The right tools for the job of cash forecasting

Creating a cash flow forecast is only half the battle – you also need to be able to monitor your cash flow in real-time. This way, you can identify any potential issues and take corrective action before they become a problem. 

There are a few different platforms you can use to do this, but since you’re already investing in AR automation software, why not make sure the tool for real-time cash forecasting you choose leverages machine learning and artificial intelligence? These advanced technologies can predict payments, identify risky accounts and much more to make cash management more convenient, efficient and effective. 

The benefits of using an all-in-one cash forecasting tool

There are a number of reasons for automating your AR process with a cash forecasting tool that’s enabled by ML and AI. You’ll be able to enjoy streamlined workflows that save time and money and manage your cash with actionable insights based on real-time cash positions.

Highly accurate forecasts

The right software will be able to predict payments and identify high risk accounts to provide you with cash projections for more accurate real-time forecasts.

Faster invoices and payments

By having all your data connected and eliminating most of the manual tasks of data entry, your invoices will go out more quickly–which means your customers are able to pay them faster. Most of them will choose to pay electronically through a self-serve portal which reduces your DSO even more.

Time and cost savings

No matter what size your financial team is, automating the many tedious manual tasks that have to be completed is going to save time. Using humans to input data that software can take care of is a waste of time and talent. Instead, you can challenge your finance professionals to work on more value-added tasks. 

Automated processes can also reduce overhead. You’ll get rid of costs such as paper, ink, postage, equipment, storage space and furniture.

Automatic reminders

There’s no more trying to keep track of which customers have paid and which haven’t. The AR automation software will send out payment reminders at helpful intervals that you set up. And there’s also no more combing through spreadsheets and notes in customer files to find past due accounts that need to be called. Your software will produce that list for you in seconds.

More accurate reports

It’s unrealistic to expect your AR team to produce completely accurate reports when they have to piece data together from multiple sources like spreadsheets, accounting systems and paper documents. Mistakes are an inevitable part of such a manual approach. Cash forecasting software keeps all your data accessible in one place for a higher level of accuracy.

Decrease in human errors

Beyond the obvious problems that come from human errors, there are the additional issues of unhappy customers, wasted time to track down and correct mistakes and  slower approvals and collections. 

Automation reduces errors, speeds up the approval process and ensures that all invoices can be tracked. 

Accessible centralized database

Real-time cash forecasting software helps you avoid inconsistencies and communication mishaps that can occur when everyone is working from their own notes and spreadsheets. The software keeps everyone on the same digital page. Plus, if someone is on vacation or out sick, it’s easy for other team members to handle issues that may come up.

Improved customer service

Ironically, a customer self-serve portal is a great way to improve your customer service. Customers appreciate the ability to make payments and get answers to questions without having to write an email or make a call. They also will like having multiple payment methods available to them and timely, accurate invoices and reminders in their inbox.. 

Payference: The Top Tool for Real-time Cash Forecasting

Payference has quickly become the preference of finance teams who want the efficiency, accuracy and visibility that AR automation software driven by machine learning and artificial intelligence can provide.

For convenience, ease of use and all the benefits discussed above, mid-market businesses find Payference fits the bill and improves every aspect of the work their finance teams complete on a daily basis. They like the way Payference

• Speeds up the invoicing process
• Accelerates collections 
• Saves time and boosts productivity
• Reduces the costs associated with manual processes
• Sends timely, accurate payment reminders and past-due notices
• Provides real-time cash projections
• Increases the accuracy of cash forecasts 
• Enhances the customer experience
• Drives collections closer to terms
• Identifies high risk accounts
• Predicts expected payments
• Provides flexibility in payment methods
• Delivers insights across different entities, currencies, accounts and more

Payference with its Payference IQ Technology™  was founded especially for mid-market companies that want to improve their overall cash management and cash forecasting. For too long, a cost-effective tool for real-time cash forecasting was out of reach for them. Most simply couldn’t afford the kind of AI-enabled software–nor did they need all the extra features– that enterprise level companies have been using for years.

If you’d like to learn more about Payference and how it can help you solve your AR challenges, reach out or schedule a demo today!