Articles17 May 2023
More disclosure on the cards for businesses
One downside to running a limited company is set to change
Articles
Now is the time to incorporate artificial intelligence and machine learning strategies
Finance directors have never been under as much pressure to deliver more accurate cash forecasts. More precise forecasting is essential not only to driving profitability, but has now become even more important as companies try to navigate the continuing difficulties created by COVID-19.
The challenges are clear, making it opportune to incorporate artificial intelligence and machine learning strategies.
By using AI and machine learning, FDs and their teams can effectively automate modelling across multiple scenarios. Freeing their finance and treasury teams from manual forecasting work also allows the FD to lead the team’s efforts on initiatives that deliver more value for the organisation. AI transformations achieve analysis with a depth and precision exceeding the capabilities of manual processes.
Problems with manual forecasting
When relying on manual processes, financial forecasts often struggle to align with the real results. For example, forecasts produced manually are often poorly integrated with sales and operations forecasting. This leads to findings that are out-of-date by the time they’re prepared.
Given these and other challenges of producing and updating forecasts manually, FDs and their teams are less able to investigate multiple scenarios and can struggle to deliver timely and accurate insights when it matters most.
Why AI?
Incorporating AI effectively eliminates the challenges of manually compiling forecast data, as well as the limitations of spreadsheet-based processes. Whereas manual data input and imports can produce errors and inconsistencies.
AI automation enables larger data sets to be collected and put to use. At the same time, AI algorithms learn and improve the accuracy of forecasts far more quickly than can be achieved manually.
To conclude
FDs who champion their internal AI transformations to be used for forecasting processes have the opportunity to introduce new levels of speed, while enhancing their treasury and finance teams’ value to the organisation.
If you need further information, please do not hesitate to contact us.
More & Other Musings
View all related contentArticles17 May 2023
One downside to running a limited company is set to change
PAST Webinars & Events13 Aug 2020
Keen to encourage homegrown creativity and innovation and to make the UK attractive to overseas investors the Government has introduced a number of tax incentives for businesses. Usually it’s pretty clear cut which tax incentive a business should apply for,... Read more
Articles14 Apr 2023
With basis period reform now underway, HMRC is looking at further tax simplification for sole traders and partnerships by increasing the cash basis turnover threshold. The cash basis scheme removes complexities such as accruals and most capital allowances. The cash... Read more
Articles13 Apr 2023
The energy price guarantee of £2,500 was extended in the March Budget for a further three months, which is welcome news for employees and any small business owners who work out of residential accommodation. The extension of the energy price... Read more
Articles8 Mar 2023
It wasn’t that long ago that HMRC was paying particular attention to businesses understating large cash sales. Now, the decline of cash, especially since Covid-19, has led to a proliferation of software used to suppress electronic sales records. An electronic... Read more