Cashflow Insight & Forecast

The Company

The Real-Estate Management Company
(“Company”) stands as a premier provider of technology and services,
catering to hundreds of Residential Communities across the United States.

The Company specializes in technology and services for Homeowner Associations and has experienced a steady growth over the years. Now owned by a prominent Private Equity Firm, the Company has
expedited its path to growth through both organic expansion and the acquisition
of other companies.

The Challenge

Cash management for the Company was very difficult prior to using AutoCash.ai. With every acquisition, the Company inherited new bank accounts and bank relationships. Until the new operations are integrated with its the core technology infrastructure, which takes months, these bank accounts are managed on a stand-alone basis. The company faced several challenges:

·      Cash Visibility:
The CFO and senior management had to wait for the month-end accounting
reconciliation to know the total cash across business entities and bank
accounts. During the month, the Finance Team spent considerable time and
efforts to report total cash balances.

·      Multiple logins:
Each bank required a separate user id and password, with some accounts
inaccessible to the corporate Finance team, making accurate cash balance
reporting difficult.

·      Lack of Consolidated Cashflow Report:
Different reporting formats from each bank made it challenging for the Finance
team to combine cash-flows across accounts for a consolidated view, requiring
significant manual effort.

·      Cashflow Categories:
Bank cashflow categorizations lacked business-specific meaning, providing
little insight into cash inflows and outflows.

·      Limited Historical Data:
Banks provided historical data in a limited, non-searchable format, hindering
cash flow analysis.

  ·      Lack of Forecast: The Company’s rudimentary cash forecasting model in Excel lacked timely updates and struggled to combine cash flow across banks, making proactive cash management challenging.

The Solution

Since adopting AutoCash.ai technology platform and engaging its Consultants, the Company has been able to use various functionalities of the software to improve their cash flow management.

·       Daily Cash Visibility: AutoCash.ai facilitates daily connectivity with several banks via SFTP and other forms of connectivity, allowing for the automatic receipt of daily bank data. Additionally, users can upload daily bank statements, consolidating all data into one platform. 

·       One-stop View on Cash: AutoCash.ai converts various bank data formats into a consistent internal database structure, providing a unified view of cash balances and cashflows. Executives and Finance staff can access all cash-related data in one place without logging into multiple bank portals.

·       Intelligent Categorization of Cash: AutoCash.ai employs Artificial Intelligence, Machine Learning, and a Rules Engine to automatically categorize cashflow logically, providing the Company with tailored insights.

·       Deeper Insights: AutoCash.ai enhance with several attributes such as line of business, customer name, vendor name etc. It also allows a user to add notes and attach documents to a transaction. Further, as transaction can be broken down into line-items for more granular details. All these features allowed the Company to get unprecedented insights into cashflow.

·       Intelligent Forecast: AutoCash.ai aids in building a robust direct cashflow forecasting process, allowing manual input, Excel model uploads, or automated generation based on historical data. This proactive approach provides better insights into cashflow, allowing for effective capital allocation. 

Conclusion

These benefits highlight AutoCash.ai’s comprehensive impact on the Real-Estate Management Company’s cash management, addressing immediate challenges and significantly enhancing overall efficiency and strategic capabilities in finance operations.