Most treasury cash flow forecasts contain significant inaccuracies, according to a new survey by
A survey of more than 200 treasury professionals revealed that organizations' overall confidence in their forecast accuracy is low: No respondents believe that they have a "highly accurate" forecast, with only 32 percent saying that their forecast is "accurate, with no significant variances". More than half of respondents (53 percent) claimed that their forecast has significant variance, while eight percent of forecasts are "very inaccurate, with major variances".
Respondents also cite a variety of challenges facing them with regard to cash forecasting. Almost two-thirds (65 percent) see a lack of visibility into all forecast data inputs as their primary challenge, while one-in-five view communications issue with other internal stakeholders as their largest challenge.
"Accurate cash forecasting is the bedrock of an effective treasury operation, but as these results show, it is still an area where many organizations fall short," said
The survey was conducted during a webinar Developing an Accurate Cash Flow Forecast, a replay of which can be viewed at http://kyri.ba/CashFlowWebinar.
How accurate is your cash flow forecast?
• Highly accurate (almost no variance): 0%
• Accurate (some variance, but not significant): 32%
• Somewhat accurate (some significant variances): 53%
• Very inaccurate (major variances): 8%
• Variances aren't analyzed: 8% What is your biggest cash forecasting challenge?
• Don't have visibility into all forecast data inputs: 65%
• Lack of communication with other stakeholders: 20%
• Don't have time / resources: 10%
• Other: 6% Online survey of 212 treasury professionals conducted on
Read the full story at http://www.prweb.com/releases/2014/06/prweb11956513.htm
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