Contents
To forecast its cash, a company can use a spreadsheet, the treasury module of its ERP, dedicated treasury management software or Business Intelligence tools. The right choice depends on the number of banks and entities, the volume of transactions and the level of reliability the finance team expects.
Key takeaways
- A spreadsheet works for small businesses; it becomes risky as soon as transactions multiply.
- Treasury management software centralises bank statements, automates forecasts and compares forecast with actual.
- The bank connection (EBICS TS, SWIFT) determines how reliable every forecast is.
Why equip yourself for cash flow forecasting?
Cash flow forecasting means anticipating future flows over a given period: expected receipts (sales, grants, capital injections), planned payments (salaries, suppliers, loans) and one-off events (investments, disputes). It has a twofold aim: to head off shortfalls and to make the most of surpluses.
Without the right tool, the work is time-consuming and unreliable: statements to download bank by bank, data re-keyed by hand, fragile formulas, and files nobody is sure are the latest version.
Which tools can you use to forecast cash?
The spreadsheet
Flexible and free, it is enough for a single-bank company with simple flows. Its limits: re-keying, the risk of formula errors, no real-time data and the difficulty of working as a team.
The treasury module of an ERP
It draws directly on the invoices, orders and payments already in the ERP, with no double entry. It is often limited when it comes to multi-bank management, scenario-based forecasts and detailed variance analysis.
Treasury management software (TMS)
Treasury management software is built for the treasurer’s job: automatic import of statements from every bank, a consolidated position, short-, medium- and long-term forecasts, tracking of financing and investments, forecast-versus-actual comparison and reporting.
Business Intelligence tools
They pull together data from multiple sources to produce visual dashboards. Useful for reporting to management, they are no substitute for a forecasting tool: they display data, but they do not produce it.
| Tool | Strengths | Limits | Who is it for? |
|---|---|---|---|
| Spreadsheet | Flexibility, no cost | Re-keying, errors, no real time | Very small businesses, a single bank |
| ERP module | Management data already integrated | Limited multi-bank and scenario support | Companies already equipped, simple flows |
| Treasury software | Automatic statements, forecasts, consolidation | Implementation project | SMEs, mid-caps and multi-bank groups |
| Business Intelligence | Dashboards and visualisation | Does not produce the forecasts | As a complement to a treasury tool |
Make your cash forecasts more reliableE-Trésorerie imports your statements every day and automates your forecasts.
Discover the solutionThe bank connection: the foundation of your forecasts
No forecast is reliable if the starting position is wrong. Automatic retrieval of statements relies on a banking communication protocol: EBICS TS for French and European banks, SWIFT internationally. Banking communication software centralises these exchanges and feeds the treasury tool without any manual intervention.
How do you choose a cash forecasting tool?
- Map your flows. Number of banks, accounts, entities and currencies; monthly transaction volume.
- Define your forecasting needs. Horizon, granularity, scenarios, group consolidation.
- Check integration. Compatibility with your ERP, your accounting system and your banking protocols.
- Choose the deployment model. SaaS for speed and automatic updates, a licence if you want it hosted within your own IT systems.
- Assess the support on offer. Set-up, training and support from a vendor that understands the treasurer’s job.
Good to know. Start by automating statement import and balance tracking: it is the building block that saves the most time and makes your forecasts more reliable straight away.
Frequently asked questions about cash forecasting tools
Is an ERP enough for cash flow forecasting?
For a company with simple flows, the treasury module of an ERP may be enough. As soon as the company works with several banks or entities, treasury management software adds the consolidation, scenarios and forecast-versus-actual comparison that ERPs often lack.
What is a TMS?
A TMS (Treasury Management System) is software specialised in treasury management: tracking bank balances, forecasting, managing financing and investments, and reporting. It is the treasurer’s everyday working tool.
SaaS or licence for treasury software?
SaaS deploys faster and includes updates. A licence lets you host the tool within your own IT systems. The choice depends on your IT and security policy.
- Banque de France — statistics and publications on corporate financing and payment times (in French)
- economie.gouv.fr — practical guides from the French Ministry of the Economy for businesses (in French)
Director of Sales at E-Finances, a French financial software publisher for more than 25 years.
LinkedIn profile