Mastering liquidity management in challenging times
Keep track of capacity utilisation, backlog, payment defaults, resource planning and more simply and efficiently.
Corona crisis, exploding inflation, war in Europe, shortage of raw materials, etc. - liquidity management has never been as important for companies as it is today! Essential for securing liquidity: transparent, up-to-date and qualified data in order to be able to make well-founded and quick decisions. How? Find out now!
From one crisis to the next
Having barely recovered from the coronavirus crisis, the global economy is facing its next challenges with the war in Ukraine. Outstanding invoices due to non-payment, long delivery times but full order books, soaring energy prices but no possibility of on-charging, a global shortage of raw materials and an unchecked rise in commodity prices - even the economically strongest company is facing significant challenges. With inflation forecast by the Austrian National Bank to rise to 5.6% in 2022, the outlook is anything but rosy. How can such a downward spiral be countered?
Liquidity forecast as a solution?
The current challenges have shown something very clearly: The issue of "securing liquidity" was underestimated in many places. This makes it all the more important that planning gaps are now rectified as quickly as possible in order to ensure that solvency can be maintained in the long term. The first step is to calculate a liquidity forecast. This can be prepared quickly by experts and shows what available - or unavailable - funds can be expected in the coming month. The disadvantage of this is that such a forecast is only a snapshot. While rent payments or payments to insurance companies represent a calculable figure, expected incoming payments, for example, are only what their name implies: expectable - and anything but a reliable component. What's more, a liquidity forecast does not help to identify important outstanding receivables that are essential for the economic progress of a company.
The same applies to resource planning. A raw material producer can guarantee that it will be able to fulfil certain orders. However, this company faces the same challenge as you and may not be able to make payments due to outstanding receivables and therefore not be able to honour the delivery. This means that from one moment to the next, the calculations in the liquidity forecast are no longer correct, which can have a massive impact on large or important deliveries. So how can you ensure that you are always up to date?
Utilise the gold of the digital age: data gold!
One thing is quite clear: having the company's controllers recalculate the liquidity forecast every day cannot be a solution. Nor can it be a solution to be informed by employees about incoming and outgoing payments on a daily basis. But liquidity must be plannable and transparent. What is urgently needed now is data. Transparent, up-to-date, accessible at any time and from anywhere and, above all, prepared in such a way that it can be recognised at a glance. Only in this way can decisions and any necessary adjustments be made when they are most urgently needed. But how can such a system of ad-hoc analyses be implemented and networked with existing tools?
Your solution.
A crisis always offers a company the opportunity to review its business model, learn lessons and subsequently optimise it in order to make better use of its potential. So take the opportunity and invest in the future of your company - invest in a system that helps you to optimise your liquidity.
With the NAVAX Power BI Finance Package, you get clear financial reports and detailed insights in just one system. Use data analyses available at any time in dynamic dashboards or receive liquidity forecasts at the touch of a button. Save time with quick cash flow reports from the liquidity planning tool and get started immediately after a short implementation time. Would you like to know more?
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