Cashforce, the digital cash forecasting and treasury platform, has released its next generation artificial intelligence (AI)-powered cash forecasting module, which it says offers accurate forecasting for chief financial officers (CFOs) and treasurers struggling to gain better cash visibility and forecasting accuracy.

Originally part of a project of the Association Française des Trésoriers d’Entreprise (AFTE) – French Association of Corporate Treasurers – to disrupt various aspects of treasury, Cashforce got involved to explore how AI could improve the cash forecasting process. For the initial proof of concept, the company worked closely with a large, globally operating corporate to make this a reality using their financial data.

“While our platform is already globally recognised for providing accurate cash forecasts, we keep on exploring how we can further improve our view on the future,” commented Nicolas Christiaen, CEO Cashforce.

“By including AI into the mix, we will provide both the CFO, finance and treasury departments with even more accurate, efficient and best-in-class cash flow analytics and cash forecasting solutions along with a single version of the truth.”

As an example, Cashforce’s ‘buffer-algorithm’ will back-test its current cash flow forecasting model and re-apply these results onto the current model. In addition to the application of smart logic such as customer and vendor payment behaviour, this will result in much more accurate forecasts. “Companies will be better able to predict the cash outcomes and avoid surprises,” the group promises.

“By including a feedback loop into the forecast algorithm, Cashforce is able to accurately predict customer payment behaviour, unexpected invoices, growth, seasonality and the like,” says Mark O’Toole, head of Cashforce for the Americas.

Next generation

After this first release, Cashforce reports that it is already working on a next version of the AI-driven forecast, by looking at more complex patterns. Several methodologies are currently being explored, ranging from basic methods such as time-series to more complex concepts such as deep-learning and neural networks.

At the same time, “client feedback is coming in and this gives Cashforce a lot of inspiration on where to improve and what proposition is bringing more value.”

In its release, the group adds: “As a ‘next-generation’ cash forecasting and working capital analytics platform, Cashforce helps finance and treasury departments save time and money by offering accurate cash flow forecasting and flexible treasury automation and significant working capital improvements.

“Cashforce is unique in its category, because it allows users to drill down to the transaction level details and the system integrates seamlessly with enterprise resource planning (ERP) systems and banking systems. In addition, an intelligent simulation engine enables companies to consider multiple cash flow scenarios and measure their impact. As a result, finance and treasury departments can be turned into business catalysts for cash generation opportunities throughout the company.”