Cash forecasting accuracy is central to the corporate treasurer’s capacity to optimise liquidity in a highly volatile macroeconomic environment. TMI calls on a brace of expert witnesses – Ed Barrie, former treasurer and now Co-Founder and Chief Product Officer, Treasury4, and Dr Hui Gong, Lecturer in Fintech, Westminster Business School – to examine the most effective approaches to forecasting.
Former treasurer and now Co-Founder and Chief Product Officer, Treasury4
Cash flow forecasting accuracy is a treasury staple, generally sitting within the top three of the hierarchy of treasury needs. But it will quickly become the number one priority during times of economic uncertainty, when increases in interest rates, periods of business stress or M&A activity are heightened.
This is outcome shown quite clearly in results from the EACT Survey 2022 (see chart 1) which notes “cash flow forecasting and treasury digitisation are likely to remain [treasury] top two priorities over the coming 12-24 months”.