CRASH COURSE CASH FLOW PLANNING
The focus of the short-term liquidity analysis is the management of open items. However, the analysis is limited to the period of payment terms for incoming and outgoing invoices. Incl. short video.
Chapter 1 - Introduction Cash flow planning
Chapter 2 - Why Cash flow planning at all ?
Chapter 3 - Quality of the Cash flow planning
Chapter 4 - How to create a Cash flow planning?
Chapter 5 - Short-term Cash flow planning
Chapter 6 - COMMITLY common procedure
The focus of the short-term liquidity analysis is the management of open items. Thus, the consideration is limited to the period of payment terms of incoming and outgoing invoices.
The open items give an indication of the development of the account balance:
Planning with the help of open items
In this video (7 min) we show how to create a Cash flow plan with the help of COMMITLY and the open items:
In COMMITLY: "Plan beats open items".
COMMITLY works according to the "either-or" principle in the forecast. If there is a plan in a period, then the open items serve as orientation for the achievement of the target. If there is no plan in a period, then the sum of the unpaid open items is used as the forecast. WITHOUT this "either/or" principle, differences would have to be planned, which would lead to a high degree of complexity and confusion.
- If a planned value is entered in a category in a month, the open items serve as a guide to achieving the target.
e.g.: Planned for Apr +100, open items +80 -> expected target achievement 80%
-> ensure that the 80 are received (open items management) +invoice another 20 (sales) - If there is NO planned value in a category in a month, the sum of the open items due in the forecast is taken as the value.
-> In the above example, the forecast would then show +80.
Open items give an early indication of possible target achievement:
And that is the perfect transition to the medium to long term Cash flow planning.
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.