Cash flow management for the management

Cash flow management

It is important to balance income and expenditure in order to secure Cash position and promote ongoing growth. Particularly in times of economic uncertainty, forward-looking cash flow management important.

It's not just about being able to pay bills. Financial markets fluctuate and business models have to constantly adapt. The term "cash flow" may sound simple, but the management behind it is anything but. It requires a deep understanding of the movement of financial resources within an organization. 

From daily operating expenses to long-term investment plans. Sound cash flow management paves the way for well-founded decisions. These not only ensure current solvency, but also enable future growth and expansion.

Consolidated daily cash flow overview
URGENT vs. IMPORTANT

Give yourself room to maneuver!

It is all too easy to get bogged down in everyday problems and lose track of things. So why use Cash flow planning at all?

Because the options for action in the event of cash bottlenecks in small companies are severely limited. And unfortunately, far too often the need for action is only recognised very late.

Always up-to-date, pragmatic and flexible

Smart and ready for your customizations

Extensive plans and scenarios

Consolidated daily cash flow overview

Daily updated overview of the Cash position of your companies

AT A GLANCE

Cash flow from operating activities

At the heart of financial management is the cash flow from operating activities. This component is of particular interest to management as it provides a clear picture of a company's financial health and operational performance. Cash flow from operating activities reflects the net flow of cash and cash equivalents resulting directly from core business activities. The company generates income from the sale of products and services and this is then adjusted for operating costs such as wages, material costs and other necessary expenses. The indicator provides information on how much money the company actually generates through its primary business activities.

Firstly, it shows whether the company can cover its operating costs from its own resources without having to rely on external sources of financing. A positive cash flow balance from operating activities indicates solid financial stability and independence. This is particularly advantageous in times of financial uncertainty and serves as the backbone of the company. A continuously positive cash flow is often a sign of a well-managed company that successfully uses its resources to promote profitable activities and make growth-enhancing investments.

This financial indicator is an important measure of current and operational Cash position and operational performance. It also provides an indication of a company's long-term financial health and sustainability.

Managing cash flow with the right cash flow management

Successful cash flow management is an important part of strategic business management. Foresight, planning and adaptability are central to this. A key aspect is the precise management of cash flow. This includes monitoring cash flow to ensure that sufficient funds are available for day-to-day operations, investments and debt repayment. It also means creating forecasts and plans. These enable the company to recognize and avoid future liquidity bottlenecks. This is where tools and solutions such as those from COMMITLY, which enable detailed analyses for successful liquidity management. In this way, financial gaps can be identified immediately and strategies developed to bridge them.

Another important point is careful cash cash flow planning. Companies can identify potential financial risks at an early stage by forecasting finances based on current data and historical trends. This allows them to plan proactively to ensure that there is sufficient Cash position for future projects and unforeseen expenses. Modern software solutions offer sophisticated forecasting tools. These enable in-depth analysis and help to plan the company's financial future more accurately. Businesses can optimize their cash flows by focusing on the timely collection of receivables, negotiating payment terms wisely and reducing unnecessary expenses. By implementing a well thought out cash flow management this is possible.

Ensure professional cash flow calculation

COMMITLY's template calculates cash flow using the direct method, based on IAS 7, ensuring professional planning, ideal for financing discussions.

Customize the template? Easily customize COMMITLY's best practice template to fit your organization.

Calculate Cash Flow Template

What advantages does COMMITLY's cash flow management tool offer managing directors?

These digital helpers offer managing directors decisive advantages. They translate complex financial data into easy-to-understand figures and charts. The ability to quickly grasp financial overviews and make informed decisions is an invaluable advantage. Cash flow management tools from COMMITLY are revolutionizing the way business leaders interact with financial information.

The immediate visualization of the cash flow in real time gives them a clear overview of the company's financial situation, allowing them to quickly see where the company stands financially, which areas need special attention and where any risks may be lurking. This transparency is the key to quick and precise decisions that drive the company forward.

Another important advantage of these cash flow management tools is their ability to simulate future cash flow scenarios. Managers can run through different situations to better understand how certain decisions could affect the company's cash flow and Cash position . This knowledge strengthens strategic planning and helps to minimize risks before they become real problems. Finally, these tools have the ability to provide business leaders with near real-time access to real data. This enables a proactive and data-driven corporate management is supported. Independence from traditional reporting cycles and the immediate availability of critical financial data shortens response times and allows business leaders to react flexibly to changes. Read in our referencesto see how the peace of mind that COMMITLY software solutions can provide has already given other business leaders peace of mind.

Cash flow unit

Cash flow units - the smart way to delegate

FASTER, BETTER DECISIONS

Creating financial security with the right cash flow forecast

Effective cash flow management not only serves to monitor and control the current cash flow, but also forms the basis for precise cash flow forecasts. These enable strategic cash management for the future. At the heart of effective cash flow management is the ability to not only make decisions based on historical data and current trends, but also to make informed predictions about future financial developments. Creating a detailed cash flow calculation and planning allows a company to strategically plan its financial route and identify potential obstacles long before they materialize. Forecasts should be updated regularly to ensure they are always up to date.

By analyzing cash flow patterns, managing directors can develop a strong understanding of their financial future. This allows them to identify seasonal fluctuations, customer behavior or the impact of economic changes. This knowledge makes it possible to prepare for upcoming shortages, time investments wisely and ensure that funds are available to support growth without jeopardizing Cash position . COMMITLY's advanced cash flow management systems have been developed by an experienced team and allow different future scenarios to be tested. Business leaders can develop strategies by running through different assumptions from changing market conditions to new business ventures.

Prudent cash flow management is of great importance for companies. It enables effective financial management and lays a solid foundation for sustainable financial success. Forward-looking forecasts are an important part of this. They allow decision-makers to actively shape the financial future, making cash flow management a powerful tool for long-term business planning and growth.

What must good cash management systems be able to do?

Efficient and powerful software is essential in liquidity management of every company. It forms the link between data and decision-making. A helpful cash flow management tool must be integrated with existing accounting systems and bank accounts to enable a seamless flow of data. Regular data updates are essential to ensure that management is always up to date.

A direct link to a company's financial accounts enables an immediate overview of the financial situation without having to extract and enter data manually. In addition, the software should have advanced analysis functions. These make it possible to prepare complex financial data in an understandable way and convert it into visual representations. Charts and dashboards provide quick insights and support decision-making by providing a clear view of the company's cash flow and financial health.

An important feature is the ability to scenario planning in cash flow management. A robust tool should be able to model different financial scenarios and analyze their impact on the cash flow and Cash position simulate them. This enables both established companies and start-ups at the beginning of their start-upmake strategic decisions taking into account possible future scenarios and strengthen their resilience to unforeseen events.

In addition, warning systems and notifications are invaluable. They highlight financial risks or opportunities and enable users to act proactively. They can be made aware of critical financial figures at an early stage instead of reactively responding to problems.

Cash flow planning made easy - All decisions firmly under control.

COMMITLY is your software tool for better cash flow management - developed by financial experts and entrepreneurs who know what is important when it comes to cash flow and Cash flow planning.

SOLUTIONS

For each business area

cash flow managers
For managers / business owners


Faster, better decisions


80/20 - don't wait for accounting. Make decisions based on resilient information.

cash flow financial area
For finance managers


Cash flow planning, simply implemented


Start in minutes, not weeks - Benefit from a simple, yet powerful Cash flow planning

cash flow accounting
For the accounting department


Payment information, blazing fast


Answer questions about payments within seconds, keep track of open items

cash flow IT area
For the IT area


Structured bank data


Direct API, Postman, Zapier integration, make.com - optimize your banking data for your purposes

Cash flow consulting
For consultants


Support your clients


Increase your digital competence, help your customers, open up new sales potentials

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Professional planning system


Introduction about the structure of a planning system in the financial area and the implementation in COMMITLY