Finance and Accounting Automation - Cash Flow Forecasting Tool

 Notes:

• What problem does it solve?: Automates cash flow forecasting, predicting future cash inflows and outflows.

• How can businesses benefit from customizing the code?: Businesses can customize cash flow forecasting based on their seasonal trends, integrate it with accounting software, and track reserves.

• How can businesses adopt the solution further?: Extend the tool to track outstanding invoices and forecast cash flow adjustments.

Actual Python Code:

import numpy as np

import pandas as pd

class CashFlowForecasting:

    def __init__(self, inflows, outflows):

        self.inflows = inflows

        self.outflows = outflows

    def forecast(self, periods):

        forecasted_inflows = np.array(self.inflows) * np.random.normal(1, 0.05, periods)

        forecasted_outflows = np.array(self.outflows) * np.random.normal(1, 0.05, periods)

        net_cash_flow = forecasted_inflows - forecasted_outflows

        cumulative_cash_flow = np.cumsum(net_cash_flow)

        return pd.DataFrame({

            'Period': range(1, periods + 1),

            'Forecasted Inflows': forecasted_inflows,

            'Forecasted Outflows': forecasted_outflows,

            'Net Cash Flow': net_cash_flow,

            'Cumulative Cash Flow': cumulative_cash_flow

        })

    def display_forecast(self, periods):

        df = self.forecast(periods)

        print(df)

# Example usage

inflows = [10000, 12000, 15000]

outflows = [8000, 9000, 10000]

cash_flow = CashFlowForecasting(inflows, outflows)

cash_flow.display_forecast(periods=12)