When considering sources of data for a cash forecasting process we need to have clarity regarding what are the key inputs, and what purpose they serve. Obviously we need forecast information, but to get maximum value from the process, we need … Read More…
Cash forecasting is often described as an arduous task. However, it is a critical process that shows how much cash a business will generate and what cash will be needed to fund future working capital and expansion. In most organisations cash forecasting has a bad name due to the amount of time it takes to do it properly and the poor results it often Read More…
Head office treasury and finance teams often find themselves in a frustrating position when it comes to managing working capital across their organisation. While they play a critical role in the provision of liquidity they sometimes have limited ability to influence the efficiency of the working capital process they fund.
When setting up a forecasting process, there are two main forecasting methods to be considered – direct and indirect. In this blog post we look the attributes of each method including; when they should be used, how they differ, and the pros and cons of each.
In today’s economic environment no one needs to be reminded of the importance of cash and efficient liquidity management planning. Corporate culture now focuses more intently on cash than ever before. Open the annual report of any large public organisation and cash related KPI’s are sure to be front and centre of business performance summaries.
Cash Flow Forecasting is the process of obtaining an estimate or forecast of a companys future financial position and is a core planning component of financial management within a company. It might sound obvious but the main output or deliverable of a cash flow forecasting process is a cash flow forecast.
On 4 April, 2016 the U.S. Treasury and IRS announced proposed new regulations under Code Section 385 aimed at curbing earnings stripping by multinational organisations through the use of intercompany debt. A central part of these proposed regulations are new Documentation Requirements….
It’s been two months since the U.S. Treasury and IRS surprised the market by announcing proposed regulations designed to curb earnings stripping by U.S. based multinationals through the use of related party debt. These proposed regulations, issued under section 385 of the code, are anticipated to have wide ranging effects …..
On 4 April 2016, the U.S. Treasury and Inland Revenue Service (IRS) issued temporary and proposed regulations aimed at curbing corporate inversions and earnings stripping. The proposed regulations will have a far wider reach than just corporate inversions and, if implemented as proposed, are expected to dramatically…..
Conversations about forecasting accuracy happen at a number of different levels within finance teams. They can be between treasury and the CFO or treasury and entity controllers. Although the conversations can vary in nature, the issue discussed is often similar, how accurate are our cash forecasts and how do we improve it in order to make better working capital and funding decisions?