Towards a dynamic approach to cash flow forecasting

On the basis of the observation of the English cash forecasting methods and the concordant results of recent scientific studies, TAIGA (young French start-up) offers pragmatic and reliable IT solutions to elaborate cash forecasts of a group , deployable SaaS solutions in a short time and in a dynamic perspective.

TAIGA has in fact developed an approach based solely on the forecasts of receipts and disbursements, in line with the operating forecasts, but directly oriented on the “cash” elements (currency exchange rates, elimination of intercompany flows, cash pooling etc. .). This approach has the advantage of only handling flows of the same nature, and consequently of aggregating them, of segmenting them, but especially of comparing them with the main tangible financial reality of a group: the cash position traceable in time real.

The reliability of forecasts is thus ensured by an automated and regular comparison between forecast flows and actual flows, which makes it possible to identify forecast errors, to understand their nature and to correct them. Thus, this dynamic approach makes it possible to improve the forecast as time goes by, and thus to approach a most accurate predictive model. In addition, it is a true vector of a “cash” culture within companies, allowing not only to orient financial teams towards cash flow issues but also to improve the forecasting process.

The so-called “indirect” approaches, incorporating an operating forecast and balance sheet clearance flows, in contrast to many biases inherent in the assumptions underlying the implementation of such approaches. In addition, it is very difficult to monitor the quality of the forecasts over time, since the accounting departments do not carry out a continuous order, the actual / forecast comparisons are more complex.

On the strength of this observation, the limitations of indirect approaches, and the observation of Anglo-Saxon practices, TAIGA has developed an efficient solution that responds directly to the issues of managers and third party financial partners. Thus, TAIGA deploys to many customers, gradually gaining the confidence of the markets and banks, but also entrepreneurs with whom it provides relevant and functional tools for assisting with cash flow forecasting. anticipation and the ability to generate cash.

Above all, TAIGA offers a pragmatic methodology that addresses both small businesses that can better anticipate financing needs and more complex organizations with the need to collect multiple information on various sites or interlocutors.

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