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Transparency in liquidity development

Yvonne Wicke | 30. March 2022

Liquidity planning is fundamental, especially in these times.

Companies are relentlessly feeling the effects of coronavirus and the war in Ukraine and are asking themselves the question: 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 stagnate or even fail to materialize. By taking timely measures, companies can maintain their liquidity.

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

Map scenarios quickly and easily

Liquidity planning is helpful to run through various worst and best-case scenarios in order to better assess the opportunities and risks of measures. Companies that think in terms of scenarios are better equipped and can take appropriate measures to secure liquidity more quickly. It is an early warning system that creates the necessary transparency and security to make better decisions in the future.

Liquidity planning with planning software compared to 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 Lengthy coordination processes lead to outdated planning when it is adopted.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 is caused by transposed numbers, countless 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.

Planning software that enables integrated financial planning is a much better choice. Companies always have an overview of their 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. As part of planning, simulation or a rolling forecast, the solution combines P&L, balance sheet and cash flow. It directly presents the results of plan adjustments, simulations or forecast calculations made during the year on the net assets, financial position and results of operations. On this basis, you can make good decisions for the future.

More about CP-Finance (PDF)


Support from TD experts

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

Please feel free to contact us.

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