New Beta Sneak Peek: Cash Flow Forecasting

PayPie Beta Sneak Peek Binoculars

PayPie is extremely excited to announce that we’ll be releasing a substantial update to our beta in the coming weeks. One of the main focal points of the update is our beautiful and cutting-edge cash flow forecasting tool.

Sneak peek: Spectacular cash flow forecasting

Cash flow is the lifeblood of any small to medium-sized enterprise (SME). At PayPie, we want to give these businesses the tools they need to thrive. Our cash flow forecasting fulfills this promise brilliantly.

It gives business owners and/or the financial professional advising them a better way to visualize the financial indicators affecting the company’s cash flow. (Our proprietary risk score contained within the cash flow forecast is an extension of these metrics.)

In the long-term, the cash flow forecasting and risk score will be tied to our business financing capabilities. However, for the moment we’re focusing on the overall significance of cash flow forecasting in terms of best practices for business financial health and value-added services for the financial professionals serving these businesses.

PayPie Cash Flow Forecast Example

How SMEs can use cash flow forecasting

Through our QuickBooks Online integration, all that small to medium-sized businesses (SMEs) or the professionals representing them have to do to use the cash flow forecasting tool is sign up for PayPie and connect the company’s QBO account.* No tedious data or customization entry required.

Better yet, the cash flow forecasting tool is free! Businesses may also use it as often as they’d like to turn basic financial data into highly visual and informative reports.

Side note: We plan to begin formally reaching out to a range of QBO audiences this summer.

See the recently refreshed the PayPie website. 

Why data visualization matters

Have you ever tried to draw conclusions from simply reading spreadsheet or string of numbers? It can be done, but it’s not always the easiest or most intuitive way to go about it. The indicators, charts and graphs in our cash flow forecast bring this information to life — making it even more valuable for “connecting the dots.”

A company’s quick ratio, cash flow ratio, current ratio and debt-to-equity ratio are at the top, with the risk score taking center stage. A cash flow graph quickly shows the relationship between the money flowing in and out of the business. Plus, useful tabs let users drill down even further into receivables, payables and other areas.

Learn more about reading a cash flow statement, how cash flow forecasting works and basic cash flow concepts.

The benefits of cash flow forecasting

A cash flow forecast shows how money flows in and out of a business over a specific period of time by:

  • Comparing the overall flow of cash into the company against the flow of cash out of the company.
  • Identifying the times when the cash reserves are at their highest and lowest.
  • Pinpointing opportunities, like which invoices are overdue in terms of cash value and days past due date.

If a business has a lot of historical data in their QBO account, our algorithm uses this information to create a forecast. For new businesses (or businesses that have just started using accounting software), the insights from their forecasts will grow as their data grows. For all businesses, cash flow forecasting offers the information needed for strategic, data-backed decisions.

An opportunity for financial pros 

“Every annual financial cycle is an opportunity to sit down and set goals and project numbers forward with your significant clients. Looking forward is not only important, but often essential to identify and avoid any looming business issues or, more positively, for identifying new opportunities too.” — Richard Francis, Spotlight Reporting Founder, AccountingWeb

As artificial intelligence eliminates data entry, there’s more time for value-added services, such as cash flow forecasting. This also opens the doors to scenario planning, debt reviews and other related services.

Build long-term relationships with PayPie

We recognize the critical role that accountants and bookkeepers play as advocates to their SME clients. This is why PayPie is developing a suite of tools for start-to-finish cash flow forecasting and management. We’ve started with the cash flow forecasting tool, which includes risk scoring.

Once we bring our invoice factoring services online in the near future, we’ll be able to help financial professionals identify and solve cash flow problems — all in one platform.

In order to deepen our relationships with financial professionals, we’re also committed to creating strong partnership programs.

Accountants and bookkeepers can get started the same way an SME would, all you have to do is sign up.

*PayPie currently integrates with QuickBooks Online. Additional integrations are coming soon. 

This article is for informational purposes only. To receive monthly email updates, click on “Get Newsletter” in the upper right-hand corner of the blog page.  

Image via Pexels.

Author: Michelle Mire

When not overseeing the PayPie Blog or writing about cash flow and business financial health, Michelle can be found working on her own health by going out for a run.