4 Reasons why Cash Analytics is Important - and How AI Helps
So, what’s cash flow management?
Cash flow management basically refers to the tracking and handling of money going into and out of your business account. It provides honest figures about where you’ve been, and if you’re good enough, can act as a crystal ball showing you where you’re going too. Now that’s covered, let’s bring in cash analytics.
Cash analytics should provide you with a handy snapshot of your working capital.
Hold up, what’s working capital?
A simple calculation and explanation of working capital is:
Working capital = current assets - current liabilities
You need to think of your accounts as a living, breathing being that needs to be nurtured. Cash analytics is like the baby monitor for your business, and should break down the following:
- Accounts receivable - the invoices that you’re owed by clients
- Accounts payable - the amount you owe suppliers
By doing this, you can see exactly the amount you should be working with, in the next 30 days.
But why is cash analytics important?
There are a number of reasons why cash analytics is so important to your business, but here are the 4 biggies.
Cash analytics shows you your accounts receivables and payables. This understanding is essential to success.
In understanding what exactly is going in and out, you can then plan what to do to either maintain your position or improve on it.
Cash analytics tell you what your balance is expected to be from invoices owed, so you can know exactly how much you can save, invest, or spend in the next month.
Cash analytics give you the numbers you need to know at a glance, meaning you free up time to focus on the more important things, like growing your business.
So, convinced yet? It’s all very well us telling you what cash analytics is, but actually doing it...well, that’s a different story.
Artificial intelligence and cash analytics
The developments of artificial intelligence (or AI), in accounting, means we never have to stress about inputting and managing data for cash analytics again. It takes over:
- Data entry
- Data validation
- Data organisation
So that you can use your super-smart human brain for the more important task of analysing.
AI & Accountancy Cloud
We’re Accountancy Cloud. Dedicated to turning financial chaos into clarity, we provide services that allow businesses to take control of their finances. Our brilliant team of financial experts is armed with the best of AI technology, meaning our clients get super-fast accounting support with zero bother.
When it comes to cash analytics, we believe the simpler it is the better. That’s why we created a dashboard, that collates all your financial data and translates it into figures that you can understand, interpret, and make decisions from.
This is all done automatically through AI and machine learning, meaning you can wave good-bye to manual data inputs and endless checks for human error.
Our dashboard provides you with that all-important snapshot of your working capital, breaking down your accounts receivable and accounts payable in a really clear, no-nonsense way. This can not only be tracked month to month, but annually too.
Itching for more information? Our E-Guide dives deeper into this topic, answering all of your cash analytics questions, check it out today.
Get in touch today, to get your finances crystal clear and manageable in the new year.