What are they?
Futrli's Predicted rows are the pure product of Futrli's prediction and accounting algorithms. They are the heart of Futrli and represent your future business if trends continue as they are.
Calculated from the historical values that Futrli pulls from your accounting data every day, they will create an accurate future view of your business that will raise questions with you, possibly require action and will give you a live, future “business as usual” that you can then layer things that Futrli can't know about (taking on new staff, launching a new product etc.).
Where can I find them?
When in Futrli, you'll find your Predictions section in the menu at the top of the screen. Alongside your invoices, you'll find the P&L and balance sheet split down.
Each one of these sections has accounts that have been fed through from your accounts package.
Under each account you’ll find a Predicted row. These rows are special and contain your predicted numbers into the future.
Is this AI?
Futrli's Predicted rows are not created using AI but have been built using Futrli’s prediction software’s algorithms. Effectively they are designed to use similar logic that an FD, CFO or management accountant would use if they were preparing a detailed forecast for you using their years of experience. Something that would take hours to prepare and hours to keep up to date. Nothing can calculate the volume of automated and accurate calculations that Futrli performs.
How are Futrli's Predicted rows created?
Futrli analyzes transactions for each account line separately, as well as the type of account that it is. Seasonality, repeating patterns and trends are identified. This is what you see in the Accruals view: when sales (from invoice e.g.) are predicted to happen for instance.
Then, all historical payments for each account line are also aggregated to give you live average payment days. This is the Cash Impact view of Futrli's Predicted lines. When the predicted activity (the invoice e.g.) will be paid. This live aggregated view incorporates (for every account):
How many days it takes every invoice to get paid for every customer +
When journals get “paid'' +
When “spend/receive” money is “paid”
What about VAT/ GST?
Futrli also calculates the VAT / GST of transactions accurately by assessing every transaction that has happened in the past and creates an account-level VAT rate that will flex and move as more transactions come in from your day-day trading.
Why? To ensure that you predicted VAT payments are as accurate as they can be. Every one of these things are factored into the future predictions that are recalculated every time your data syncs (once per day).
That’s why you can trust Futrli
The outcome of these layers and layers of predictions are that you are always looking at a realistic predicted cash balance as well as predicted values for every account’s activity and cash impact and tax liabilities.