Chapter 1 : Introduction to cash flow planning
A short introduction and an overview of the course. Balancing theory and practice
Nothing compares to the importance that liquidity has in small and medium-sized companies. Because in the event of liquidity shortages, small companies have far fewer options for action than large ones.
Welcome to our introduction to cash flow planning! Here we give you a clear overview of the subject and the perfect mix of theory and practice.
Liquidity is of central importance for small and medium-sized companies. It is precisely here that the room for manoeuvre in the event of financial shortages is often limited, which makes planning all the more important.
Our goal for this course
In this course we show you step by step how to set up solid cash flow planning. We stick to hands-on, easy-to-follow guidance. Theory is unavoidable, but we present it as compactly and usefully as possible. The links included help you pick out exactly what you need right now.
The course covers the following topics in various chapters:
- Why cash flow planning matters at all is explained at the start of the course.
- After that we describe the necessary quality criteria that cash flow planning should meet.
- The course then turns to the basic structure behind creating a cash flow plan.
- The chapter after that deals with the important area of short-term cash flow planning, taking open items into account and distinguishing it from long-term cash flow planning.
- Then the usual approach to creating a cash flow plan in a digital cash flow tool is described, using COMMITLY as the example.
- A webinar shows the discussion of using a cash flow tool to simulate short-time work (in the context of the Corona pandemic).
- As a bonus we have an eBook on liquidity management in SMEs at the end of the course.
Enjoy it, and good luck!
Useful links
Visit our blog post “Cash flow planning: everything about the topic”, in which we explain the basics simply and vividly.
There you will also find everything worth knowing about cash flow planning: from what a cash flow plan means, through its structure and how to create one, all the way to practical templates and examples.
Liquidity in the company
Understand the differences between the profit and loss statement and the cash flow statement, and find out why both pursue the same goal.
For a deeper insight you will also find a comprehensive presentation on “Cash flow planning for entrepreneurs” on Slideshare.
Cash flow planning for entrepreneurs
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