Xero has filed a patent for a computer implemented method to manage capital for a primary entity. The method involves determining cash flow forecasts, identifying sub-time frames with surplus or deficit, and generating recommendations to improve capital management. The patent aims to assess financial data to predict capital surplus or deficit within a given time frame. GlobalData’s report on Xero gives a 360-degree view of the company including its patenting strategy. Buy the report here.
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According to GlobalData’s company profile on Xero, Virtual banking assistant was a key innovation area identified from patents. Xero's grant share as of September 2023 was 30%. Grant share is based on the ratio of number of grants to total number of patents.
Method for managing capital and generating recommendations for improvement
A recently filed patent (Publication Number: US20230306515A1) describes a computer-implemented method for improving capital management for a primary entity. The method involves determining a baseline cash flow forecast for a specific time frame based on financial data associated with the primary entity. The financial data includes transactions between the primary entity and other entities. The baseline cash flow forecast is determined by analyzing the trend component and seasonality component of the financial data. If the fitness metric is below a predetermined threshold, a second seasonality component based on a different periodicity is determined.
The method also includes predicting the probability of receiving payment for each invoice within the time frame and modifying the cash flow forecast based on these predictions. The probability of payment is determined by assessing the payment history of the secondary entity associated with each invoice. The method further involves generating a cash flow forecast tool within a graphical user interface (GUI) that displays the baseline cash flow forecast and recommendations for improving capital management.
The recommendations provided by the method include adjusting the financial data to manage predicted cash flow during sub-time frames. Users can select and implement these recommendations through the cash flow forecast tool. The method also allows for automatically executing recommendations based on target parameters related to capital management. The executed recommendations are analyzed to determine their effectiveness in mitigating cash flow shortfalls or excesses, and the recommendation engine is revised based on this analysis.
The patent also describes a system comprising processors and memory that can perform the method described above. Additionally, a machine-readable medium is mentioned, which stores computer-readable code that can execute the operations of the method.
Overall, this patent presents a computer-implemented method and system for improving capital management by generating cash flow forecasts, providing recommendations, and allowing for adjustments based on financial data and target parameters. The method aims to optimize cash flow and enhance capital management for a primary entity.
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GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
