Cash flow management - so what?
We are financial experts, have worked as CFOs in large companies, advise companies on our own and have made the experience that at the end of the day we are always confronted with the same questions:
- Can we afford additional marketing?
- Can we hire employees?
- How will the company look in 3 months?
In short, everything revolves around Cash position and the resulting scope for action.
Cash position as a decisive factor
Liquidity management is part of Cash flow planning - a central component of corporate planning for both SMEs and large companies. More about Cash flow planning also here.
The main objective: to ensure permanent solvency.
The central task is therefore to monitor the cash flow and actively manage it. If there are overdue receivables, for example, countermeasures must be taken immediately. In simple words: If contractor X has still not paid 3 months after the end of the payment period, it is high time for a reminder. There are certainly companies with full order books that run into payment difficulties. As a rule, medium-term liquidity management has failed.
What does it take?
In order to successfully manage Cash position , companies must have all the data they need: the current liquidity status, a short-term liquidity forecast and medium and long-term planning for Cash position. Commitly offers exactly that!
Financial management: quite simple?
Financial management starts very simply - with an up-to-date overview of the account balance and all transactions. No matter how many banks they are with. Commitly connects all your accounts, reads the balance and transactions and puts them in one secure place that's simple to set up and easy to use.
And the whole thing without annoying manual lists. Because we have often seen that companies manage their liquidity management with a tool that was not designed for this purpose. Some fear it, some love it. That's right: Excel!
All the tools necessary for successful liquidity management are provided in COMMITLY: planning of financial development, monitoring and the possibility to immediately identify undesirable developments - i.e. deviations from the plan.
With these tools, you have all decisions under control, can achieve the goals you set and make your commitment visible. And that's exactly why we developed Commitly: To help entrepreneurs like you achieve your financial goals!
Credits: Photo by Daniel Cheung on Unsplash