As small businesses and other companies struggle with cash flow management amid the coronavirus pandemic, HSBC wants to help.
The Vancouver-based bank on Thursday (Jan. 14) rolled out a â€œCash Flow Forecastingâ€� tool through its online banking unit.
The tool, which can be accessed through a single sign-on, is designed to enable businesses across the size spectrum to both â€œbuild a more accurate picture of their future finances and manage liquidity across all their accounts,â€� HSBC said in a press release.
Designed for HSBC commercial banking clients, the bankâ€™s Cash Flow Forecasting tool automatically loads data from a firmâ€™s various accounts. For some clients, that could eliminate, with the stroke of a few keys, weeks previously spent laboriously retrieving data from internal banking systems and building spreadsheets, HSBC noted.
The tool can generate â€œsophisticated cash forecasts for up to a three-year horizon,â€� with the ability to do â€œmodeling and scenario testing,â€� the bank said.
In addition, â€œdetailed variance analysis highlights differences between forecasts and actual performance,â€� according to HSBC.
â€œEfficient cash flow forecasting is critical to effective liquidity management, allowing clients to budget effectively and plan [for] the future,â€� said Michael Klopchic, head of global liquidity and cash management for HSBC in Canada, in a press release. â€œAnd the uncertainties and business disruptions of COVID-19 have only made this more important. The HSBC Cash Flow Forecasting tool gives companies actionable insights to help build their business, through an intuitive and interactive user experience.â€�
Interest in cash flow modeling and forecasting has surged over the past 10 months since the coronavirus pandemic erupted in the United States last March.
â€œThe entire practice of annual or periodic forecasting is now falling by the wayside as CFOs seek more effective ways to navigate pandemic-fueled uncertainty,” PYMNTS noted in an interview with Prophix CEOAlok Ajmera.Â “What every single CFO was doing around the world was constantly re-forecasting â€” almost on a weekly basis,” Ajmera noted.