Accurately predicting cash-flows is incredibly difficult, hampered by treasurers only having access to rudimentary software tools and spreadsheets. And while the prediction can provide guidance, it is not wholly reliable. Patrick Kunz, managing director of consultancy firm Pecunia Treasury & Finance, says having even 70–80% accuracy in cash flow forecasting (CFF) would be considered a success.
The innovation of artificial intelligence (AI) in CFF seems to provide the solution. While existing CFF software can utilise historic data, financial algorithms and predictive analysis, AI can dig into invoicing patterns, error recognition and discrepancies. It can even go as far as to flag potential fraud and model possible scenarios. AI can also be integrated into the accounts payable and accounts receivable processes.
