elite treasury services

The future belongs to those who prepare for it today." - Malcolm X

Cash forecasting is now increasingly important among corporates; however accurate and effective forecasting is a major challenge to the Treasurer.  A successful cash forecast process can provide good visibility of changes in the business, (especially cyclical ones) and provide valuable time for management to take corrective actions.

Forecasts should span a period of at least 13-17 weeks to be most valuable, providing accurate data about future borrowing or cash balances, working with key members of your team we can advise and or build forecast models that reflect the profile of your organisation using all the relevant data outputs of the company to provide the most comprehensive forecast.

Forecasts can also be used to raise awareness of the important cash and working capital to non-finance colleagues within the business resulting in:

  • Greater accuracy of investment timelines to maximise yield.
  • Increased working capital efficiency
  • Improved visibility of cash positions to pro-actively reduce borrowings
  • Early warning capabilities for major cash surpluses or deficits
  • Gain deeper trust of banks, auditors by demonstrating importance of future flows.
  • Identify major change & improvement opportunities in the business.

Other Benefits of Cash Forecasting

In re-financing negotiations, the existence of reliable forward looking cash forecasts may help in progressing negotiations with possible lenders, underpinning more generalised financial forecasts. In addition to the short term cash forecast it may be beneficial to provide lenders with a 2 year + high level cash forecasting model, which (used in conjunction with pro-forma financial statements) can provide evidence of  compliance with projected borrowing covenant ratios, thus assisting in loan negotiations.


Contact Colin Evans Managing Director at Elite Treasury Services to discuss your Treasury requirements