In the modern business and project landscape, the importance of
efficient cash flow management cannot be overstated. It's a critical aspect of
financial stability and growth. As organisations expand, the complexity of cash
forecasting can become overwhelming, with data scattered across various
financial systems, ERPs, banks, and entities. This is where automation comes to
the rescue, making cash forecasting more efficient, accurate, and lessening
manual work. However, it's crucial to understand that automation is not a magic
wand; it's a tool that magnifies the effectiveness of your existing processes.
Automation as a Force Multiplier
Automation plays a pivotal role in integrating multiple
tools and systems, allowing them to seamlessly share information, reflect updates
in real-time, and provide a single source of truth. Nevertheless, it's
important to stress that automation should not be seen as a replacement for
flawed or undefined processes. In fact, introducing automation into inefficient
processes can exacerbate existing issues. The foundation for successful
automation is solid, well-defined processes that exhibit consistency and
transparency.
Cash Flow Forecasting and the Breaking Point
Complex cash forecasting scenarios often reach a breaking
point when an organisation's growth leads to operations becoming fragmented and
data scattered across various systems and entities. It's at this juncture that
companies realise the need for cash forecasting automation. Even when
automation is the right choice, human oversight remains essential for assessing
the return on investment and adapting systems to changing needs and evolving
solutions.
Approaching Cash Flow Automation
The approach to automation must be tailored to an
organisation's unique context. Consider how forecasting is currently done, the
existing processes, the involved stakeholders, the systems in use, and the
location of necessary data. Once this context is understood, the planning for
automation can commence, outlining the project's requirements.
Benefits of Cash Management Automation
Cash management automation offers several compelling
advantages:
- Cost Savings: Real-time cost tracking and detailed commentary provide transparency on spending.
- Increased Efficiency: Automation reduces repetitive tasks, freeing up more time for analysis.
- Improved Accuracy: Data entry happens once, and it populates where it's needed.
- Better Cash Visibility: Instantly track cash inflows and outflows.
- Quick Fraud Detection: Red-amber-green (RAG) systems highlight errors for assessment and correction.
- Streamlined Payments and Reporting: Approvals flow directly to accounts payable with easily tracked reporting versions.
- Increased Customer Satisfaction: Prompt payments, staying within budget, and transparent reporting instill confidence and minimise pressure on stakeholders.
UniPhi: Your Partner in Cash Flow Automation
UniPhi offers a comprehensive solution to achieve all these
benefits with transparency and ease within the lifecycle of projects and portfolios managed. It provides capacity to generate cash flow using AI derived from past completed projects you have managed. Actuals are automatically posted to the cash flow profile via completed invoices and this provides the most accurate platform for forecasting future projects.
New projects can have their spend (and revenue) profiles generated in 30 seconds. Check out the video below to see cash flow automation in action.
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