Easy + Rigorous Forecasting
For AI for SMBs Weekly #2, we’re focusing on a critical task for any business: forecasting cash flow. Maybe not the sexiest of topics, but revisiting a forecast likely made in early December towards the end of Q1 is a good idea.
If you have ideas for future newsletters, I'd love to hear them.
A link to the AI Models Comparison Chart is at the bottom; no updates since last week.
-justin
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It's Thursday afternoon and you're reviewing your finances when that sinking feeling hits – there's not enough cash to cover next month’s payroll and your biggest customer just emailed asking for a payment extension 😬.
Cash flow surprises are the business equivalent of surprise house guests – stressful, disruptive, and arriving at the absolute worst time. Fortunately, generative AI can help you see these "guests" coming weeks in advance and guide you to prepare accordingly.
Here’s how.
Step 1
Gather Your Financial Data
To create accurate forecasts, you’ll need to assemble these data, which likely means exporting data from your accounting software (QuickBooks, Xero, FreshBooks, etc):
- Bank statements (3+ months)
- Past cash flow statements
- Accounts receivable aging reports
- Customer payment records
- Seasonal trend data (if available)
Get as much as possible in spreadsheet format; .PDFs should work in a pinch but tabular data will make this more effective. If you’re using Claude, then export data in a .CSV as it struggles with .XLSX.
