Cash flow forecasting in Board refers to the ability to project

short-term or long-term liquidity by dynamically linking profit and

loss as well as balance sheet drivers and assumptions.

Cash flow forecasting or liquidity management in Board allows

organizations to move from a reactive cash monitoring approach to a

more forward-looking liquidity management.

This is done by optimizing cash positions and evaluating different strategies

for funding, shifting cash from those with excessive liquidity to those

with cash gaps. It also allows us to integrate cash flow planning with

the set of integrated financial statements by directly linking cash flow to

profit and loss, balance sheet, or working capital projections.

Let's take a quick look. Directly from the Board platform, we can access the Board

cash flow forecasting capabilities.

This provides a simple and standard 13-week cash flow forecast

by individual legal entity. Through highly visual indicators, we

can easily spot areas and weeks that need specific attention.

At any point, it is also possible to use the Board AI capabilities and the

cash flow agents. These agents, either through pre-configured prompts or

custom prompts entered by users, let the Board AI capabilities do

the heavy lifting for analysis. For example, the agent can

identify weeks needing attention, highlight the drivers of excess cash

or gaps, and recommend specific actions at any time.

We can always drill down into more details for each specific entity.

For example, we can look at Acme North America and see a typical

13-week cash flow statement for that legal entity at any time.

It is always possible to focus on any specific week.

If required, we can look at a particular week to understand exactly what the

components are for that week.

This guides us from the opening balance all the way to the ending balance,

showing which areas absorbed or generated cash.

Going back to a full week view, let's now start to understand a little

better. What are the individual components of cash flow forecasting in Board?

First, the starting point is always the opening balance.

The opening balance in Board can be retrieved directly from an integration with

your financial institutions. For example, if we have multiple financial

institutions, we can connect and extract the individual ending balances by

each bank account on a daily basis.

A second component of cash flow analysis is the projections coming from working

capital and profit and loss assumptions.

When it comes to working capital in Board, we have the ability to integrate with

any kind of accounts receivable or accounts payable subsystems.

This allows us to import the status of the invoices that have been issued and need

to be collected, or the invoices that have been received and need to be

paid. For accounts receivable, we can access each individual

invoice by customer. We can identify the date it was issued, the

expiration date when it is due, and whether there are any additional discounts

or adjustments to be made. This includes the possibility to set a new

date that may have been agreed with the customer, or to write off the invoice

completely for each individual customer.

We can also define what we call a customer profile.

The customer profile helps us identify risk for each customer, showing

which customers are very solvent and which are less reliable.

For example, Abbott is a fairly on-time payer and usually pays in

33 days, even though the original terms are 30 days.

Let's return to the components of the cash flow forecast.

Beside the opening balance and the collections from accounts receivable or

payables, we also have the ability to collect forecasted revenue.

In this case, the forecasted revenue could come directly from Board or any

other system where revenue is budgeted by month or week, depending on the

required detail. We also define the impact of that revenue on

the projected balance sheet in terms of invoicing and then assign

specific rules like DSOs or DPOs by legal

entity or by individual customer.

This translates our revenue into the projected balance sheet, and from there

into projected cash flow. Looking again at the components of our cash flow

forecast, not only inflows, but we will also consider cash

outflows. Outflows directly from the payroll system or any other

system. We also have the ability to enter cash ins or cash outs

manually as needed, simply by entering the amount at any point in

time. Once all cash inflows and outflows have been properly

accounted for, either automatically or manually, the system then

translates all inputs and calculations into a net cash flow,

resulting in a closing balance that might be subject to specific corrective actions

such as new loans or new lines of credit or cash pooling strategies

to get the situation back on track.

Of course, cash flow forecasting in Board is very focused on what-if

analysis. At the core of any planning application in Board is the

concept of multiple different scenarios.

In this case, we are comparing scenario one, the base case, with

other scenarios such as a best scenario or worst scenarios.

Week by week, the system performs an analysis to help us understand what is

happening between one version and another based on different

assumptions. We can always drill down to understand the variance between

one scenario and another, and we can enter further explanations or

analyses as needed.

Let's quickly review the capabilities of cash flow forecasting and liquidity

management in Board. You will be able to plan at any level of detail you'll

need, including weekly or daily, capturing inflows and outflows

by customer, by legal entity, and more.

It is also possible to model collections and payments based on specific actual

behaviors, such as the customer profile, to improve forecast

accuracy.

We can integrate with any subsystem for automation, such as accounts payable

and accounts receivable, which will impact the weekly cash flow.

All of this is done with a what-if mindset, allowing you to evaluate multiple

scenarios, leveraging Board AI agent for cash flow and liquidity

management, which will handle the heavy work, detect anomalies

automatically, explain variances, and suggest specific

corrective actions if needed. Thank you for your time and attention.

For more information, visit us at

www.board.com.