As various crises in the past have shown, transparent liquidity planning is essential for ensuring a company’s solvency. The basis for this is provided by a resilient, daily cash position available at the push of a button.
In addition, the focus is shifting from strategic, long-term financial planning to a more short-term view. However, this must then be solid and comprehensive. In concrete terms, this means that all available information must be automatically incorporated into the forecast. A minimum is the automatic consideration of electronic bank statement items and earmarked items. With good treasury management software, cash flows and account balances can be determined quickly and accurately. Once the data is available, it is possible to drag and drop the concerned accounts – this not only saves time, but is especially beneficial for the performance of the entire department.
It is also essential to activate liquidity reserves. To this end, for example, all free credit lines must also be continuously monitored and controlled. Additional aspects are contingent liabilities (guarantees, sureties, etc.) and other financial obligations. In the past, the latter were mainly considered in a longer reporting period, but now they must also be monitored on a daily basis.
The most important aids at a glance:
Cash position at the push of a button
The starting point for all further actions is the daily updated view of the bank statements, covering the entire account balances of all accounts.
Short-term liquidity preview at the push of a button
Disbursements can be controlled by the treasurer, but what about cash inflows? The payment behavior of customers determines cash receipts, which in turn determines liquidity. So that the whole accounting department does not have to be involved, it is possible with a TMS such as Ltc|treasury and Ltc|treasury in SAP® to incorporate the payment behavior of the customers directly into the cash flow.
Time savings and security through a uniform planning tool
Lengthy planning with Excel spreadsheets should be automatically mapped by secure data from the leading system, such as SAP. This enables central liquidity planning for all subsidiaries and the head office directly in SAP. The processing time of the liquidity preview is reduced to a few minutes.
Limits can be monitored automatically, differentiated by account. In the event of an over- or underrun, the treasurer can be warned, and the account automatically disposed of.