How to Use Clockwork to Create Cash Flow Forecasts with your QuickBooks Online or Xero Data

Say goodbye to outdated spreadsheets and hello to a cash flow forecasting tool that's so sharp, it could cut through the excuses your rivals are making for their lackluster finances. Meet Clockwork AI — the FP&A tool making complex financials look so easy, it’s almost insulting. From overall financial modeling to employee headcount predictions, Clockwork AI takes full consideration of your business to provide unprecedented visibility into the cash flowing in and out of your organization.  

In this article, we will explain how Clockwork AI is the only purpose-built FP&A platform for finance teams using QuickBooks Online and Xero, so companies across the globe can turn their cash flow mysteries into cash flow certainties. 

Cash flow forecast limitations in QBO and Xero 

QuickBooks Online and Xero are essential accounting products for gathering and tracking financial data. It’s why QuickBooks Online and Xero have more than 10  million users worldwide. But for cash flow analysis and predictions? You need a tool that packs a serious punch, because cash flow forecasting is essential for businesses of all sizes, with a whopping 82% of small business failures born from cash flow issues.

Clockwork is the only FP&A software that provides a year-long weekly view of your cash flow that looks at your business as a whole. While accounting software like QuickBooks and Xero offer simple monthly and quarterly cash flow projections out to 90 days max, their softwares make it challenging for businesses to obtain granular, weekly insights into their cash flow dynamics with any sort of flexibility or scenario planning. This  restricts real-time financial planning and decision-making, especially for businesses with more dynamic and fast-paced cash flow needs.

No wonder accountants and businesses waste over 12 hours each month just updating financials. Not only does this process leave room for human error to seep into your financials, wreaking havoc on the health of your business, but it’s a colossal waste of resources when the alternative is so much sweeter. 

‍Enter Clockwork: Getting the job done in an instant

It’s time to ditch the endless back-and-forth between Excel spreadsheets and your QuickBooks Online or Xero account. With Clockwork, you can expect seamless integration with your existing data, yielding ultimate and immediate clarity and efficiency right from the start. 

Let’s take a look at how to set up a cash flow forecast in Clockwork, shall we? 

Step 1: Login. 

And that’s it.

Yes, really. 

As soon as you integrate your QuickBooks Online or Xero account upon account creation, your financial projections and cash flow forecast is depicted on your dashboard in minutes as a color-coordinated line graph detailing your revenue, cost of goods sold (COGS), gross profit, EBITDA, net income, and operating expenses. The actual numbers are represented by solid lines on the graph, while the forecast is indicated by the dashed lines. 

Clockwork utilizes an intelligent baseline forecast to predict your future numbers using your business’s historical data, and you can compare your actual business numbers against the forecast for each factor in your financial model — meaning you don’t need to hire outside support to help you make sense of the data. After all, why pay six figures when the insights are just a click away? 

This visibility makes Clockwork a financial planning game-changer, empowering you to pull the curtain back on the future and correct potential problems before they even surface. 

The cash flow forecast takes all these data points and transforms them into a new, simplified line graph that represents your cash in, your cash out, and your ending balance. You can also customize your cash flow forecast based on assumptions and different scenarios. For example, if you know your business plans to hire an advertising firm in Q4, you can add that assumption to your forecast and Clockwork will show you how much that will change your financials — in seconds. You can also create forecasting rules for different assumptions, manage custom variables, and build out as many different scenarios as you’d like.

If you want to get really specific, you can view each line item of your financial model, month-by-month, with actual numbers and forecasts within the Financial Model tab. Plus, Clockwork makes hourly, automatic updates to keep your cash forecasts fresh, forever eliminating the task of updating historical financial data from your to-do list. With Clockwork, you can attain complete mastery over your cash flow and take charge of your financial planning like never before. 

What are you waiting for? 

Clockwork isn't your average financial tool; it's literally changing the game. Unlike other financial planning and analysis software that only provides monthly cash flow updates, Clockwork crafts both dynamic 5-year financial projections and 52-week cash flow forecasts tailored to your business just by analyzing your transactional-level data from QuickBooks Online or Xero in minutes. 

It’s literally that easy. 

With Clockwork, you'll effortlessly forecast revenue, expenses, and cash flow with laser precision, eliminating hours of tedious manual work and human error. Plus, you can add custom assumptions, explore limitless "what-if" scenarios, and collaborate seamlessly with an unlimited number of users.

For companies that want to experiment with different revenue streams or pivots, Clockwork can help forecast that with a few simple clicks. And now, with the headcount planning feature, you can even integrate data from your payroll system to build accurate hiring scenarios and more. Leveling up your cash flow forecasting all begins with Clockwork. 

If you’re serious about your business’ success, it’s time to Clockwork or clock out. 

Create a free account, with a 14-day free trial of our premium package (no credit card details required!), or book a demo today. 

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