How To Use Xero And Fluidly To Forecast Cash Flow
A key area that small and medium-sized businesses struggle with is sustaining positive cash flow. According to a recent study by Xero, the businesses in the UK that exhibited positive cash flow metrics amounted to just 48% of those surveyed.
Why Cash Flow Forecasting Matters
Cash flow refers to the amount of cash that goes in and out of businesses. Negative cash flow is extremely detrimental to a business’ sustainability and growth. It implies that liabilities and investments have overtaken revenue and ROI. While it’s the usual course for businesses just starting out, sustained negative cash flow spells failure for a business in the long run.
Negative funds are generally the result of bad investments, inaccurate predictions, and weak advisory implementations. Accountants now shoulder the great responsibility of estimating financial projections in a way that helps clients make crucial decisions. Luckily, AI-powered solutions are now being utilized to help accountants with cash flow forecasting.
The Benefits of Cash flow Forecasting
According to Caroline Plumb, CEO and Founder of Fluidly, most accountants have a hard time keeping up with what’s happening to their clients’ businesses. Inadequate information about a company’s funds is one of the key reasons behind this setback. Accountants and business owners must have a solid understanding of what exactly cash flow entails. Here are a few reasons as to why it’s so important:
- Understanding the flow of your finances can help deduce factors that contribute positively or negatively toward revenue and ROI
- Cash flow statistics from the past lend valuable insights on the probable course to take for guaranteed success in the future
- With preemptive guidelines and finance forecasting advisory, accountants can now prevent their clients from making erroneous judgments and help them stay ahead in the game
Fluidly’s Solution
Fluidly is an AI-powered software that helps accountants make valuable forecasting advisory for the benefit of the clients. The software helps accountants and business owners in more ways than one.
- The software administers crucial business data to generate preemptive finance advisory instead of routine documentation of past statistics
- Machine-learning takes charge of displaying a financial overview of critical metrics for each of the clients in real-time. You can, therefore, identify struggling clients before it’s too late and help them by processing actionable, data-driven insights
- Accountants can download the Fluidly base-line statistics report within minutes and offer them as a low-barrier cash flow advisory to clients struggling financially
- Fluidly has collaborated with GoCardless to implement smart credit card control. This software speeds up the payment process by generating reminders via email and by scheduling calls
How Fluidly & Xero Work Together
Fluidly can now be integrated with Xero’s invoicing software, helping introduce their solution to a range of clients whom they see as early adopters. Users connected with Xero can use Fluidly’s services without any prior training.
Xero users will find that the AI-powered solution is seamlessly integrated into their accounts. The integration results in generating data-driven forecasts for businesses to use. Check out our Xero review for more insight.
With Fluidly’s downloadable overview of your financial standings, you’re immediately informed of the factors that positively or negatively impact your funds. The overview contains a transaction-by-transaction breakdown. This paves way for an actionable course that saves you time, money, and from future hassles.
You can easily connect with the AI-powered solution by following these simple steps.
- Visit Fluidly’s website
- Register yourself by clicking on the ‘signup’ option
- Enter your company name, email address, and other particulars
- Once the particulars are filled in, the page will redirect to the user’s accounting software
Here you’ll link up your Xero account with Fluidly and be ready to go within minutes.
Conclusion
Forecasting cash flows has surfaced as an indispensable skill for accountants who are hoping to sustain scalability for their clients and companies alike. However, forecasting is still a challenge, and cash flow remains the Achilles heel for many businesses.
Luckily, the advent of AI-powered applications like Fluidly can go a long way in scraping this burden off accountants’ and finance managers’ shoulders. Businesses can now benefit from accurate and preemptive forecasts for greater success in the future.
