Transparency in liquidity development

by | Mar 30, 2022

Liquidity planning is elementary, especially in these times.

Companies are relentlessly feeling the effects of Corona and the Ukraine war and are asking themselves: What’s next?

In times of crisis, liquidity is planned for the following weeks and months. The challenge is that expected cash inflows from receivables or planned sales revenues falter or even fail to materialize. By taking timely action, companies achieve the maintenance of liquidity.

In a longer-term corporate plan, liquidity is planned for the next two to three years. In this case, liquidity planning is a key tool for planning investments, revising the payment behavior of customers or towards suppliers, or making changes in the sales area.

Map scenarios quickly and easily

Liquidity planning is helpful for running through various worst- and best-case scenarios in order to better assess the opportunities and risks of measures. Companies that think in scenarios are better equipped and can take appropriate measures to safeguard liquidity more quickly. It is an early warning system that generates the transparency and certainty needed to make future decisions more effectively.

Liquidity planning with planning software versus Excel

Many companies use spreadsheets in some form for planning purposes. In principle, it is possible to create liquidity planning with MS Excel, but the time factor is generally underestimated. Lengthy coordination processes lead to outdated planning when it is adopted. A high susceptibility to errors arises due to numerical errors, innumerable links or erroneous overwriting of a formula, which in turn leads to unreliable numbers. This is particularly painful in a time of crisis, when action has to be taken under time pressure.

A much better decision is to use planning software that provides integrated financial planning. Companies always have an eye on liquidity and can quickly take targeted countermeasures. With scenario planning, they are prepared for all times of crisis with watertight results.


Secure long-term liquidity with Corporate Planner Finance

The Corporate Planner Finance software solution serves as a pioneering and flexible function for future investment and financing decisions. It is the key to transparent financial planning. Within the scope of planning, simulation or a rolling forecast, the solution combines P&L, balance sheet and cash flow. It directly presents the results of intra-year plan adjustments, simulations or forecast calculations on the net assets, financial position and results of operations. On this basis, you can make good decisions for the future.


Support by TD experts

Our team consists of people from different disciplines with extensive experience in integrated financial planning, liquidity management, strategy consulting and project management. As a long-standing, certified partner of CP Corporate Planning AG and specialist of the entire CP software portfolio, we accompany and support you in the sustainable use of Corporate Planner Finance.

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