Recession Proofing Your Business: Cash Forecasting During Age of Volatility

Key Takeaways: 1. Closely monitor cash flows and the cash conversion cycle to detect signs of liquidity crisis 2. Forecast daily to enable the Treasurer and CFO to plan liquidity with confidence 3. Gain visibility into long-term cash forecasts to offer guidance to the A/R and A/P teams 4. Use technology to uplift the treasury function from number crunchers to a forward-looking strategic partner to the business With the threat of a deep recession looming large on the horizon, companies realize that maintaining liquidity is essential to navigate this crisis. Tasked with ensuring sufficient liquidity, Treasurers must provide the CFO and Board with accurate forecasts which predict possible devastating events. Foreknowledge of a possible cash crunch can enable Treasury to apply measures to mitigate the impact and ensure the continued viability and credit worthiness of the company. This is, however, easier said than done! COVID-19 is a black swan event, meaning there are no historical data points for Treasury to refer to. Further, key cash flow indicators such as DSO are changing so rapidly that the assumptions made while forecasting are often rendered irrelevant by the turn of the week. With CFOs demanding accurate and current views of cash, how can Treasury departments ramp up the speed with which they forecast to deliver each iteration in real-time, especially when teams are working remotely? For answers, join the 30-min webinar where Tracey Knight and Bill Weiss discuss how companies can quickly pivot to the new norms, using technology and generating accurate forecasts on a real-time basis.