Fluidly's cashflow forecast is built by interpreting historic cash movements, and then using this information to predict the day, amount and counterpart of future transactions, where possible.
Timeframes and information types
When clicking into a particular cell, users will find information broken down by 'payments', 'upcoming', 'predictions' and 'buffer' sections, as dictated by whether the cell is historic, current or forward-looking.
We will come to define these terms in the section below, but let's first frame then in the context of different time periods:
- Historic cells will contain only payments
- Current cells may contain payments, upcoming, predictions and buffers.
- Future cells may contain upcoming, predictions and buffers.
Better understanding how information is broken down
- Payments represent cash movements that have taken place, eg. debtor invoices that have been received, salary payments that have been made.
- Upcoming indicates invoices that are currently on a business' ledger and are either awaiting payment or waiting to be paid. This section will include a date, and invoice reference and a counterpart.
- Predictions show forecasted cash movements that are not yet on the ledger, but have a high likelihood of taking place in the future based on historic information. These will include a date and a counterpart but not an invoice reference as this is yet to exist within your accounting software.
- Buffer represents an expected cash movement that we can associate with a particular customer or supplier [counterpart], but that we believe has a strong likelihood of taking place based on historic information.