One year, my company had to endure a sudden drop in revenue. We did not know where our resources were supposed to go. Using the data analytics of historical sales trends, economic indicators, and competitor data, I could outline seasonal patterns and potential threats. We could predict future cash flow based on data visualization. Then we moved forward by adjusting budgets to cut unnecessary costs and invest in new opportunities throughout slower periods. Data analytics came into play and helped us replace uncertainty with informed decision making.

There are 3 factors that influence Cash Flow. Revenue, Variable Expense, and Fixed Expense. 1. Create a Rolling 12 Income Statement (an annual summary, month by month.) This removes seasonality. What is the trend in Revenue and Net Income? 2. Separate Fixed Costs (Building, Administrative Compensation, Taxes and Benefits, and Other) and Variable Costs (Supplies, Direct Labor, Marketing). What is the Contribution Margin trend after Variable Costs? 3. Core Capital Target (2 months Operations, Infrastructure Capital) What is the cash trend to cover this? 4. What variable expenses can be reduced or will more marketing change revenue? 5. Calculate the minimum revenue, contribution margin, and cash needed for liquidity and solvency.

Automation tools that are powered by AI can predict cash flow trends by analyzing large volumes of historical financial data in real-time. They can identify patterns and trends and use ML algorithms to generate reasonably accurate forecasts.

Data analytics helps predict cash flow trends in uncertain economic times by analyzing historical patterns, monitoring real-time financial data, and modeling future scenarios. It identifies trends, tracks KPIs, and uses predictive modeling to forecast changes. Analytics also highlights risks like late payments or cost spikes, enabling proactive management. By incorporating external data and economic indicators, businesses can refine forecasts, optimize cash flow, and make informed decisions to navigate uncertainty effectively.

Use Scenario Planning which involves using predictive analytics and machine learning to simulate different economic situations, such as recessions or market growth. These simulations help businesses understand how various scenarios might impact their cash flow, enabling them to prepare and adjust strategies proactively.

In a VUCA world, it is important to take note of exceptions that might occur. In this regard, preparation several reports with different scenarios allow us to be prepared for such circumstances if they occur

Check the historical data of cash flow 1-What kind of business do you have 2-What kind of contractor you deal with 3-Also always you should have preplan to convert cash to digital

Planification financière: Anticiper les besoins en liquidités pour assurer la solvabilité de l'entreprise. * Optimisation des investissements: Identifier les opportunités d'investissement les plus rentables. * Gestion des risques: Prévoir les éventuelles difficultés financières et mettre en place des mesures correctives. * Négociation avec les banques: Présenter des projections fiables pour obtenir des financements. Quelles données utiliser ? * Données historiques: Chiffres d'affaires, coûts, encaissements, décaissements, etc. * Données externes: Indicateurs économiques, tendances du marché, comportement des clients, etc. * Données prévisionnelles: Budgets, prévisions de ventes, etc.

To predict Cash flow Trends Data Analytics can be used following Techniques TO Look Back: Analyze past sales to see patterns like peak seasons or slow periods. To Predict the Future: Use past data and current trends to forecast future sales and expenses. To Stay Updated: Monitor your sales and costs daily to adjust your predictions if needed. Why is this helpful? Avoid Money Problems: You'll know if you'll have enough money to pay bills or invest. Make Smart Decisions: You can decide whether to hire new staff, buy more products, or offer discounts. Reduce Risk: You'll be prepared for unexpected changes in the economy. By using data, you can make better business decisions and stay ahead of the competition.