General definition: Cash Flow Planning and Forecasting involves predicting, managing, and optimizing the movement of cash into and out of an organization. The process ensures there is sufficient liquidity to meet both short-term operational needs and long-term financial obligations. By analyzing historical financial data, revenue streams, expenses, payments, and external factors under various financial scenarios, organizations can anticipate potential cash shortfalls, plan for growth, and make informed financial decisions. Cash flow planning also considers the timing of payments and receipts, investments, and funding requirements, ensuring alignment with broader financial strategies.
Value it delivers:
- Enhances financial performance through better cash management and forecasting accuracy
- Reduces liquidity risks by identifying potential cash shortfalls before they occur
- Supports operational needs by ensuring consistent cash availability for day-to-day operations
- Enables more effective strategic financial planning and decision-making
- Improves the ability to respond to unforeseen changes in cash flow or market conditions
How Anaplan delivers that value: Focusing on key components such as cash flow forecasting, liquidity management, and working capital optimization, Anaplan ensures that organizations can accurately plan and manage their cash flow. This allows for predicting and managing cash inflow and outflow to ensure sufficient liquidity to meet short- and long-term obligations and plan for growth by analyzing revenue, expenses, and payments under different financial scenarios.
Typical inputs for this use case:
- Historical cash flow data
- Revenue forecasts and sales projections
- Expense forecasts, including operating and capital expenditures
- Accounts receivable and payable schedules
- Inventory levels and turnover rates
- Debt repayment schedules and interest rates
- Investment and divestment plans
- Macroeconomic indicators and market trends
- Financial policies and assumptions (e.g., credit terms, payment cycles)
What this use case feeds into:
- Anaplan use cases:
  1. Finance: Tax Planning
  2. Finance: Reserve & Solvency Forecasting
  3. Finance: Strategic Financial Modeling (Treasury)
  4. Finance: Transfer Pricing
  5. Finance: Corporate Finance Planning (L2)

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