Liquidity – the key indicator for financial health

A profound planning of liquidity includes all cash flows over a specific period of time. After the initial stock has been determined, all incoming and outgoing payments are recorded. The result is an accurate picture of how the cash flow (ie the availability of cash and cash equivalents) has developed over the period in question.

In order to be able to make forecasts about the liquidity in the future, the cash flow plan is then updated into the future – on the basis of the past performance of the cash flow. The goal is to predict the development of solvency and to early identify risks in the cash flow.

Liquidity planning is extremely important because it makes the solvency of a company visible. It’s as simple as that: If a company’s cash flow has become too low to settle payments, the business is massively threatened by insolvency!

Although liquidity is so important to a company’s financial health, cash flow management tools are hard to find. While many companies are still desperately trying to set up their cash flow plan with Excel spreadsheets, our software solution flowpilot offers an efficient and professional alternative to finally get your liquidity planning under control – fast and easy!

Liquidity is the key!

Did you know that almost 80% of bankruptcies are due to a lack of cash flow management?

Read more (all linked articles in German):

What is liquidity planning?
Which companies need liquidity planning? 
Methods of liquidity determination
From liquidity calculation to cash flow planning
The 6 most common errors in cash flow management
Excel: Liquidity planning with templates
Save the ‘Shoe-Niverse’: A short example how cash flow planning can save a business

The opportunities of professional cash flow management

A liquidity plan represents the cash flow of a business and forecasts its performance in the future. I Additionally, professional liquidity management actively manages a company’s cash flow and strives for the improvement of solvency. For this purpose, a variety of tools can be implemented.

Read more (all linked articles in German):

From liquidity planning to professional cash flow management
Take these chances to  improve your cash flow
Learn more about the so called Cash Conversion Cycle
Learn more about Liquidity degrees
How to deal with outstanding receivables
How to distinguish the three different types of cash flow
How to avoid foreign currency risks for your cash flow

With flowpilot you analyze and plan your cash flow with a few clicks.

A holistic view on your business’ financial situation: Integrated financial planning

The financial situation of a company can be observed through different perspectives. While the liquidity perspective looks at solvency only, the income statement focuses on profitability. A company’s balance finally focuses on the use of funds, e. g. through investment and current assets. It also includes a view on the source of funds, e. g. from equity or external capital.
The challenge is: It is quite difficult to integrate all these parameters into one holistic view on a company’s financial situation and perspectives. This is exactly what integrated financial planning does.

Read here (all linked articles in German):

Financial planning today – the monthly view on your income statement
Integrated financial planning – why?
Who needs integrated financial planning?
The planning factors
Practical example of integrated financial planning
Integrated financial planning – who is in charge of it?
See how valuable integrated financial planning can become for a company’s future
Excel vs. Software Solutions – what tools are useful for integrated financial planning?

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