Citizens introduces a cash flow forecasting tool for small businesses

Citizens has unveiled a new digital solution, Citizens Cash Flow Forecasting, enabling small business owners to predict cash flow up to 12 months in advance. This tool provides competitive tips, insights and benchmarks. It allows companies to compare themselves with similar companies based on geography, revenue and number of employees.

This tool meets the needs of small businesses, helping them manage their finances more effectively. By consolidating financial applications and taking advantage of expert advice, companies can improve profitability, productivity and cost efficiency. The study results emphasize the importance of using digital knowledge and tools for the sustainable development of the company.

Available on the Cash Flow Essentials platform

The new tool is available to users of Citizens Cash Flow Essentials, an online and mobile cash management platform launching in 2023. This extension joins a suite of digital resources for small business owners, including digital account opening, Zelle® for small business, and mobile deposit.

Citizens’ 2024 Business Outlook Survey shows that 55% of SMB owners are making improving their cash flow visibility a priority. Mark Valentino, director of business banking at Citizens, said: “We are working closely with our business customers to identify critical needs. We then provide digital tools that provide customers with an exceptional experience and enable them to make confident financial decisions. Cash Flow Forecasting is designed to help clients consolidate their financial applications and optimize their financial performance, so they can spend more time running the businesses they love.

The survey involved 600 executives from small and medium-sized U.S. companies with annual revenues of up to $25 million. Consolidating cash flow tools has proven to provide several benefits. Respondents who did so reported increased profitability (44%), increased productivity (43%), and lower costs (42%).

Insights drive competitive advantage

The study also showed that companies using financial tools and expert advice expect a competitive advantage. 87% of “knowledge-based” companies expect rapid growth in the coming year. These companies also have five-year plans focused on growth and have a good understanding of their cash flows.

The study identifies several tactics that can help small and medium-sized businesses succeed:

Consolidate financial applications

Sixty-six percent of knowledge-driven companies expect double-digit revenue growth this year thanks to financial application consolidation.

Set clear goals

Knowledge-driven companies are more focused on improving visibility into cash flow, making informed decisions and protecting data against fraud.

Take advantage of digital invoicing and payments

Nearly 60% of these businesses use digital payment and invoicing tools to get paid faster. Tools such as peer-to-peer digital payments, card acceptance and recurring payments are popular.

Seek expert advice

These companies seek advice from lawyers, business bankers, fintech providers and auditors. Compared to 59% of other companies, 83% of knowledge-driven companies have a dedicated business banker. Additionally, 72% of leaders expecting double-digit growth over the next five years plan to rely on financial tools and expert advice.

Image: Depositphotos

---