A contribution by Dr Christian Wurditsch - Entrepreneur, Investor, Business Angel

EXCEL - The Stone Age Axe in Cash Management

Or: COMMITLY - the smart cash flow assistant of today

Tasks or challenges can be approached in different ways. Most of the time, we also have a number of options to choose from today. This is also true for cash flow management. There are time-honoured approaches such as the A4 sheet in combination with bank statements and open item lists or the worksheets with the formula forest in Excel. Or you can take a modern, AI-supported solution like Commitly.

Which applies to you as an entrepreneur? Traditionalist or pioneer - or quite different - simply a doer who wants to manage his business in the best possible way and therefore uses the most efficient solution for cash flow management. Since you have enough experience with Excel, the application is a good option after all. Really?

In order to resolve blind spots, one must first recognise them. Spoiler beware - Excel dates back to the 1990s and was a contemporary tool for liquidity management until the 2000s. Those days are gone. Why?

Excel as an antiquated time-eater

Firstly, Excel is a programme focused on general spreadsheets and not a specialised programme for budgeting, cash flow planning, etc.

Secondly, and this point is even more important, Excel means unnecessary effort. This is clear right from the start. Because Excel is not intuitive. The first time I use it, I don't understand how Excel works or what I can do with it immediately. I first have to learn the software in order to understand its basic features. The basic functions of Excel must first be recognised, understood and implemented. Writing in cells, entering formulas, linking cells requires training, education and continuous application, otherwise the knowledge will be lost. In other words, every Excel user must learn to interact with the software in order to do something useful with it. This knowledge must also be transferred to other employees if they are to assist with the task.

In summary, working with Excel requires a lot of work on your part. This is because Excel is initially an empty spreadsheet with many white cells laid out in rows and columns and comes with a myriad of calculation functions, 98% of which are not used by the majority of users. This means that you have to find your way around spreadsheets full of empty cells and a clear forest of countless calculation functions in order to achieve your goal of optimally managing your company in terms of liquidity. Many people forget this today because they can no longer remember their first steps with Excel. Numerous websites with Excel tips for beginners or Excel courses or Excel training courses bear witness to this.

Intelligent technology of today

Today we see that it can be done differently. Current technologies are so intuitive and supportive that you can access the skills and benefits of the service immediately, without having to invest a few hours or training loops in advance.

Smart Services already provide the solutions. Instead of dealing with questions such as "How can I do this or that with Excel to get to my cash flow planning?" and the associated Excel formatting, you can focus on the "WHAT" with modern liquidity management tools such as Commitly. What are the factors for Cash position that you as an entrepreneur or managing director can better manage with Commitly?

Commitly makes this possible immediately....

Automated data import & data update

The automated data import not only quickly creates your initial data basis. No, the automated data import also helps you to keep track of the cash situation on a daily basis. All your cash movements are added and the automated calculations ensure that you are always up to date to manage your business. With one-touch updating, Commitly can work wonders.

Out-of-box calculations

All essential calculations for liquidity management are carried out automatically. The calculations are made according to internationally recognised rules and are backed by decades of practical experience.

AI-supported suggestion system for categorisation

All inputs and outputs are assigned to freely definable categories for a better overview and thus a better basis for control. Commitly helps you with the AI-supported suggestion system for categorisation.

Immediately decision-oriented diagrams and graphics

Transforming essential data visually into charts and graphs aims at (a) enabling a quick gain of information and (b) supporting in the decision-making situation. Diagrams and graphs are especially helpful when you have to present the current situation or plans to others such as investors, banks, co-managing directors. This enables a common picture and thus understanding to be achieved much more quickly in discussions.

Permanent automatic forecast

The automatic forecast makes the effects of your daily decisions visible with regard to your goals. Every decision is reflected in your figures and you don't have to worry about updating or tracking them. Commitly does this for you by default.

Corporate management with continuous target recording

One's own knowledge of how to make a line break or display negative values in red in Excel should have no influence on the quality and, above all, should not be an obstacle to the cash management of your business. Therefore, Commitly does not provide Excel tips, Excel tricks or an Excel tutorial.

Commitly's expert tips are straightforward cash flow management tips to help you steer your business on the wave of success. Our most important tip in this regard is to actively manage your cash flow. Good forecasting and building awareness of cash flow in your business will strengthen decision-making processes in all aspects of your business. After all, running a business means making decisions - Should I hire another sales person? Is it possible to invest in a second location? How can I keep an eye on the development of my expenses?

Cash is the blood of your business, so it's important to know where you put your heart and soul. Make informed decisions, whether your business is on the up or down. Making sound decisions requires up-to-date information, especially about your financial situation. Liquidity management plays an important role in steering your business through the various decisions you need to make. Commitly supports you here as a pulse and blood pressure monitor for your business from the very first minute.

The Excel vs. Commitly comparison makes safe

Excel has served many purposes as a general spreadsheet program and can be used for many things. At the same time, it is clear to see that Excel is inferior to specialized Cash flow planning software or cash flow management services such as Commitly in key functions. Admittedly, the comparison is like comparing a Stone Age axe with a laser cutter. 

Time saving with Commitly compared to Excel 

Commitly saves an average SME more than 60 hours per year compared to Cash flow planning or cash flow management using Excel. In addition, Commitly creates a better information base for decisions and therefore more efficient time management for running the company. 

Trying something new or letting go of the old takes longer for some and shorter for others. With several decades of experience in using Excel, we are familiar with this hurdle. 

Credits: Photo by COMMITLY