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Weekly cash flow forecasting

Problem

Building a weekly cash forecast often means pulling an accounts receivable report from the ERP, deleting columns, running a second report for each customer's average days to pay, and combining the two by hand in a spreadsheet. Most of the time goes to preparing the data and not to deciding what to do with it. The averages are also easy to skew, because one disputed invoice that is 60 days old can pull a customer's history well away from how they normally pay. Holdback, the portion of a contract amount a customer keeps until the project is substantially complete, does not appear in receivables until then, so it is usually tracked by hand and added to the forecast manually. The same is true of how much of the credit line the business has used. Finance may not realize cash is running short until the business is close to needing to borrow, or is close to its borrowing limit.

Solution

Receivables and payables come from the ERP each night through REST APIs, so the ERP stays the source of truth. Each customer's payment history is reviewed and outlier payments are flagged, so a disputed invoice does not distort the predicted payment date. Finance can override any date, and the forecast updates right away. The forecast is a week by week report where every number drills down to the invoices behind it, with late items highlighted. Holdback appears at a projected date, and when substantial completion is recorded it links to its invoice so the amount is not counted twice. A credit line view alongside the forecast shows how much is in use and how much the business would need to borrow, so finance can see a limit coming weeks ahead.

At a glance

Vertical

Construction

Professional Services

Used By

Finance

C-Suite

Building Blocks

Reports

Integrations

Large Language Models

Logic Blocks

Dashboards

Building Blocks

This solution was built using these Nextworld features

Reports

Shows the cash forecast week by week, drillable to the invoices behind each number.

Integrations

Pulls receivables and payables from the ERP each night through REST APIs.

Large Language Models

Reviews each customer's payment history and flags outlier payments.

Logic Blocks

Projects holdback release dates and switches to the invoice when substantial completion is recorded.

Dashboards

Shows how much of the credit line is in use, how much the business would need to borrow if the forecast goes negative, and how paying the balance down changes what is available month to month, so finance can see a limit coming weeks ahead instead of at the last minute.