How a Real-Estate Management Company benefited from AutoCash.ai

CASH FLOW INSIGHTS and FORECAST

Company’s Challenges in Cash Management

About the Company

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.

How AutoCash.ai solved the Challenges

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.

Additional Benefits Provided by AutoCash.ai

• Higher profitability: Better cashflow insights and cash forecasting from AutoCash.ai allowed the Company to reduce borrowing from its credit facility which translated into reduced interest expense. In addition,  the Company was able to invest excess cash more opportunistically and increase its interest income.
• Time and Resource Efficiency: The Company achieved substantial time and resource savings by automating cashflow categorization, daily visibility, and forecasting. This heightened efficiency allowed the Finance Team to shift focus to strategic financial tasks, enhancing overall productivity.
• Scalability and Adaptability: AutoCash.ai’s scalability seamlessly accommodated the company’s growth, adapting to increased transaction volumes, diverse financial structures, and evolving business needs.
• Real-time Decision Support: AutoCash.ai empowered the Company with real-time decision support. Daily cash visibility, intelligent categorization, and deeper insights enabled the Finance team and the executives in making informed decisions, facilitating effective adaptation to changing cashflow and market conditions.
• Enhanced Security and Compliance: AutoCash.ai bolstered security and compliance in the Real-Estate Management Company’s cash management by securely connecting with banks through SFTP. The platform’s data consolidation within its secure platform ensured the robust protection of financial information.

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.

About AutoCash.ai

AutoCash.ai offers a technology platform and advisory services to enhance corporate cash management. The platform aims to automate cash management through advanced technology, with ongoing efforts to expand functionalities for working capital management and efficient financing. It aims to level the playing field between large and mid-size companies in Corporate Finance through its platform and know-how.

Launched in 2023 in New York by Alok Kumar Barnwal, a veteran in Corporate Finance, Treasury, and Capital Markets, with experience at General Motors, GE Capital, and McKinsey Investment Office, AutoCash.ai is well-positioned to revolutionize cash management and financing for mid-size companies.