How AI Can Help Home Builders Forecast Cash Flow

Introduction:

Cash flow management is one of the most critical challenges for home builders. Knowing when your business might run out of cash—your “cash expiration date”—can mean the difference between steady growth and financial stress. In this blog post, Jon Markee, your Builder CPA, walks us through how home builders can use AI tools like ChatGPT to help forecast cash flow more efficiently.

Setting the Stage: Using AI for Cash Flow Forecasting

Jon begins by opening ChatGPT with a clear prompt for his “senior financial analyst”—that’s ChatGPT itself. The goal? To create a 13-week cash flow forecast and identify the potential date when cash might run short.

He explains that the AI already has access to key financial reports, such as the general ledger (GL), profit and loss (P&L), and balance sheet. To complete the picture, Jon uploads the Accounts Receivable (AR) Aging and Accounts Payable (AP) Aging summaries directly from QuickBooks.

This combination of reports allows the AI to assess when cash is expected to come in and go out—helping predict whether there will be any shortfalls.

How to Get the Data Ready

Jon walks through the steps in QuickBooks:

• Open Reports and select Accounts Receivable Aging Summary, then export it to Excel.

• Do the same for Accounts Payable Aging Summary and save both in the downloads folder.

• Upload both reports to ChatGPT for analysis.

With that, the AI has what it needs to begin forecasting.

The AI’s Response: A 13-Week Forecast

After processing the uploaded data, ChatGPT initially struggles—it returns a blank report on the first attempt. But after a quick retry, it generates a complete 13-week cash flow forecast that includes assumptions, sensitivity checks, and even a downloadable report.

The result: no cash shortfall detected. The AI predicts the lowest projected cash balance will occur during the week of October 11th, with $3,682 remaining.

Reviewing and Validating the Output

Jon emphasizes that while the AI-generated forecast looks promising, builders shouldn’t accept it blindly. He advises reviewing the downloaded report, confirming the data aligns with internal records, and verifying the assumptions behind the forecast.

AI tools are powerful, but human oversight remains essential—especially when financial decisions are at stake.

Key Takeaways for Home Builders

1. AI is a Time-Saver: Uploading your financial data to ChatGPT or similar tools can automate parts of your forecasting process, freeing up time for strategy and operations.

2. Double-Check the Data: AI can make mistakes. Always review forecasts carefully to ensure the numbers make sense.

3. Combine Human Expertise with AI Power: Use AI to process data quickly, but rely on your CPA’s experience to interpret and act on the insights.

4. Plan for the Future: A cash flow forecast—AI-generated or not—helps you make proactive decisions about collections, vendor payments, and cash reserves.

Conclusion

Jon Markee’s demonstration shows that AI can be a valuable tool for builders looking to stay ahead of cash flow issues. With accurate data, clear communication, and professional oversight, you can create reliable forecasts that support business stability.

Leverage the power of AI and professional accounting insight—your future cash flow will thank you.

For more insights, watch the full video where Jon Markee, your Builder CPA, explains the process in detail.