Cashflow Modelling

Cashflow Modelling

We equip organisations to assess potential threats to liquidity in real time. This allows you to assess the impact of rapidly shifting drivers and to respond with confidence - even when faced with the most complex combinations of events…

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Reality moves quickly: we’re here to help you keep pace

The ability to ask “What if?” and get answers you can trust: this is often cited as the biggest benefit of planning & analytics. But now more than ever, the what ifs are being overtaken by more urgent questions: “What just happened?” and “How will it impact our liquidity?”.

Faced with issues such as potential supply line bottlenecks, currency exchange volatility, staffing restrictions and more, financial decision makers need the ability to respond quickly to emerging situations and evaluate developing risks.

There should be nothing static about forecasting and modelling. You require the tools to do it everyday; to quickly adjust the inputs, to assess and reassess in light of rolling events.

Utilising the likes of IBM Planning Analytics and other world-leading tools, we can equip you with this capability.

cashflow modelling screenshot of tables and graphs

Common cashflow management challenges

  • Exchange rate and commodity market fluctuations. In areas such as materials and transport costs, businesses require the ability to assess the financial impact of sudden changes.

  • Supply line interruption. New logistical barriers can arise unexpectedly. Limits on labour availability, enhanced screening and customs checks can all have immediate cost implications - especially in a ‘just in time’ operational environment.

  • Bad debt. In challenging trading conditions, even those clients with the most solid payment track records can find themselves unable to meet their obligations.

  • Fluctuating market demand. This can have implications both for short-term liquidity and for inventory management.

  • Staffing. When new rules are unexpectedly imposed on who you can employ, where and under what circumstances, maintaining an accurate payroll budget forecast is a major ongoing challenge. There may also be decisions to be made on whether and how to re-categorise workers in light of regulatory changes, such as the off-payroll working rules.

  • Customer behaviour. When customers suddenly change the ways in which they access your core offerings, you need the ability to react at speed. Do employees need to be re-deployed? If, so, under what scale? If certain physical assets can be scaled back, how will this impact your overhead spend? This can give rise to both opportunities and challenges, and you require the ability to assess both.


Too often, an organisation’s ability to react is hampered by legacy systems - especially if you are using standalone spreadsheets for modelling. 

Spreadsheets demand extensive manual input. It means plenty of scope for error, along with reduced trust in the numbers. The modelling process is too slow, and if you need to reforecast in light of a changing situation, it is rarely something that can be done without lengthy reworking. None of this is conducive to swift decision making. 

Introducing your cashflow modelling toolkit 

MHR Analytics can give you the ability to model at speed when a situation is escalating, without sacrificing on data accuracy.

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Cash flow modelling

- Integrate data from across your organisation, including operations, sales, HR and capital investments into dynamic models.
- Use rolling forecasts, linked to operational changes and market events.
- Start with a sandboxed model pre-populated with base numbers: a blank slate to play with.
- Adjust inputs on a granular basis (e.g. new currency rates, supplier price changes, plant capacity reductions).
- Immediately see the impact of the new inputs on profitability and liquidity.
- Test unlimited scenarios quickly and without the need for technical input.
- Visualise your results in a range of different ways (e.g topline summaries, departmental or geographic breakdowns) to make your findings immediately relevant to everyone.

Salary & compensation modelling

  • Test the impact of staffing budget drivers on an organisation-wide, departmental or individual employee level.

  • Quickly and accurately assess the financial impact of furloughs, sick leave and restructuring.

  • Use alongside cash flow modelling to assess the impact of staffing changes on capacity, productivity, profitability and overall liquidity.

Modelling cashflows using IBM Planning Analytics (TM1)

What next?

Whether you are starting from scratch with data analytics, or else looking to update your existing capabilities, MHR Analytics can help.

For help with identifying the solutions that will equip you for agile modelling as well as the training and support to become fully self sufficient in this area, speak to MHR Analytics today.

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