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Liquidity planning explained simply: How to keep your company liquid

What does liquidity mean?

A company's liquidity is a key indicator of its financial health. Further information on: "What is liquidity".

Importance of liquidity planning for companies

The liquidity plan plays a central role in ensuring solvency and is therefore an essential part of a company's financial planning

The liquidity situation can be optimized through systematic and forward-looking payment planning.

Well thought-out liquidity planning enables bottlenecks to be identified at an early stage, risks to be minimized and measures to be taken in good time to meet payment obligations.

It therefore supports financial stability and helps to avoid payment difficulties.

Liquidity development and liquidity requirements


The analysis of liquidity development includes the evaluation of a company's cash inflows and outflows over a certain period of time.

It enables trends and fluctuations in the liquidity situation to be identified and helps to recognize bottlenecks or surpluses at an early stage.

Determination of liquidity requirements

Determining liquidity requirements is a key aspect of liquidity planning.

This involves analyzing and assessing the company's future payment obligations in order to determine the need for cash and cash equivalents.

This includes the consideration of planned expenses, liabilities due, payment targets and expected cash inflows.

Careful analysis of liquidity trends and precise determination of liquidity requirements enable you to maintain adequate liquidity and meet payment obligations on time.

This contributes to financial stability and increases the company's ability to act in a dynamic business environment.

Structure and components of liquidity planning

The liquidity plan consists of various components and sub-plans that allow you to comprehensively manage your solvency.

The most important components of liquidity planning are explained below, focusing on payments, liquidity planning subplans, periodization and the planning period.

Solvency, deposits and disbursements

Cash flows in the company

Liquidity planning is concerned with analyzing and forecasting the company's cash flows.

This includes both payments received and payments made in the course of the company's business activities.

Various factors are taken into account, such as sales revenue, payments from customers, expenditure on materials, wages and salaries and other operating expenses.

Income and expenses

A central aspect of liquidity planning is the precise recording and planning of income and expenditure.

This involves forecasting expected income and expenses over a certain period of time.

This enables a realistic assessment of the liquidity situation and helps to identify bottlenecks or surpluses in good time and take appropriate measures.

Liquidity planning subplans

Sales and payment target planning

Sales and payment target planning is a central part of liquidity planning.

This involves analyzing and forecasting expected sales revenue.

At the same time, payment targets are set, i.e. the periods within which customers should settle their invoices.

The planning of these payment targets plays an important role in liquidity management, as it influences incoming payments and therefore has a direct impact on your liquidity.

Expenditure planning

Expenditure planning is concerned with forecasting and controlling a company's planned expenditure.

This includes both fixed costs, such as rent and wages, and variable costs, such as material costs or marketing expenses.

By carefully planning your expenses, you can ensure that you have sufficient liquid funds to pay them on time.

Financial planning

Financial planning is another important part of liquidity planning.

This involves analyzing and planning the company's various sources of financing.

These include, for example, equity, debt capital and potential investors or lenders.

The aim of financial planning is to ensure that you have sufficient financial resources to cover liquidity requirements and meet payment obligations.

Periodization and planning period

The periodization and planning period are important aspects of liquidity planning.

This determines the time periods in which liquidity planning is carried out.

The planning period can vary depending on the individual needs and requirements of the company, for example monthly, quarterly or annually.

Periodization allows you to monitor liquidity over a certain period of time and make adjustments if necessary to ensure solvency.

Taking these various components and sub-plans of the liquidity plan into account enables you to effectively manage your solvency and liquidity and create a solid financial basis for your business operations.

By analyzing and forecasting payments, planning sales and payment targets, accurately recording expenses and planning financing, you can achieve an optimal liquidity situation and react to any liquidity bottlenecks in good time.

Preparation of liquidity planning

Creating a liquidity plan requires careful analysis and planning in order to ensure a company's solvency.

Important aspects of preparing a liquidity plan are explained below, including the data basis and sources of information, tools and aids used such as Excel and spreadsheets, risk assessment and consideration of risks as well as a practical example to illustrate this.

Data basis and sources of information

Creating a liquidity plan requires a solid database and access to relevant sources of information.

Internal data such as past business transactions, invoices, accounting documents and sales forecasts are taken into account.

External information, such as market trends, supplier payment terms and current economic indicators, can also be incorporated into the database.

An accurate and reliable database is crucial for accuracy and effectiveness.

Instruments and tools used

Excel as a controlling tool for liquidity planning

Excel is a widely used and powerful tool for implementing the liquidity plan.

It offers a wide range of functions and options for analyzing and displaying payment flows.

Excel can be used to efficiently record and calculate incoming payments, outgoing payments, sales and payment targets.

It also enables the creation of charts and graphs to visualize the development of liquidity.

Use of spreadsheets for planning

The use of spreadsheets within Excel or other software solutions facilitates the structuring and organization of the liquidity plan.

Various spreadsheets can be used to record deposits, withdrawals, sales and other relevant information.

This enables a clear and systematic presentation of the liquidity plan.

Risk assessment and consideration of risks

When drawing up a liquidity plan, it is important to identify risks and take them into account appropriately.

These include, for example, delays in incoming payments, higher expenses than planned or unforeseen events such as natural disasters or political changes.

A risk assessment makes it possible to evaluate potential risks and take measures to minimize them.

A realistic assessment of risks can make the plan more accurate and resilient.

Practical example for creating a liquidity plan

A practical example of creating a liquidity plan illustrates the application of these aspects.

The various steps and considerations are presented, starting with data collection and information analysis through to the creation and monitoring of the liquidity plan.

This example illustrates the practical implementation and provides an insight into the procedure for liquidity planning.

The creation of precise and reliable liquidity planning, taking into account the database, the use of suitable tools such as Excel, risk assessment and a practical example, enables you to effectively manage your solvency and be prepared for any challenges that may arise.

Analysis and controlling of liquidity planning

Effective analysis and control of liquidity planning enables you to continuously monitor your solvency and make adjustments if necessary.

The most important aspects of the analysis and controlling of liquidity planning are explained below, including an overview of the development of liquidity, the tracking of incoming and outgoing payments, the presentation and evaluation of the liquidity plan and the role of banks and lenders.

Overview of liquidity development

A comprehensive overview of the development of liquidity enables you to assess the current status of your liquidity and recognize trends.

This includes the regular review of incoming payments, outgoing payments and the available cash balance.

By analyzing the development of liquidity, the company can identify bottlenecks or surpluses and take appropriate measures to optimize liquidity.

Incoming and outgoing payments

Tracking incoming and outgoing payments is an essential part of analyzing and controlling the liquidity plan.

The actual payments are compared with the planned payments and deviations are analyzed.

This enables a precise assessment of the liquidity situation and helps to identify payment delays, bad debts or high expenditure at an early stage and take appropriate measures.

Presentation and evaluation of a liquidity plan

The presentation and evaluation of the liquidity plan is crucial in order to obtain a clear overview of the company's financial situation.

Charts, graphs or reports can be used to visualize the development of liquidity and present the most important key figures.

Regular evaluation enables the company to review the effectiveness of the liquidity plan, identify deviations and make adjustments if necessary.

Role of banks and lenders

Banks and lenders play an important role in liquidity planning.

They can offer companies financial support in the form of credits, loans or other financing instruments.

Close cooperation with banks and lenders enables the company to make use of flexible financing options and, if necessary, to bridge short-term liquidity bottlenecks.

Regular communication and exchange with banks and lenders are important factors for successful liquidity management.

Thorough analysis and effective controlling of liquidity planning enable companies to secure their solvency, avoid liquidity bottlenecks and maintain financial stability.

Practical application and benefits of liquidity planning

Liquidity planning is used in various areas of the company and is of great importance for the effective management of financial resources.

The following section examines their practical application in various areas, their role in finance and investments, their contribution to financial planning and their significance for company management.

Role of liquidity planning in the financial sector

The liquidity plan plays a central role in the financial area.

It enables the precise planning of payments, the optimization of cash flow and the guarantee of sufficient liquid funds to meet payment obligations.

The liquidity plan can minimize financial risks and create a solid financial basis.

Liquidity planning in the area of investments

The liquidity plan also plays an important role in investment planning.

It enables companies to determine the financial requirements for planned investment projects and to ensure that sufficient liquid funds are available to finance these investments.

A careful liquidity plan helps to avoid financial bottlenecks and ensure the profitability of investments.

Liquidity planning as a financial planning tool

The liquidity plan serves as an instrument for the comprehensive financial planning of a company.

It enables financial targets to be set, resources to be used efficiently and financial stability to be guaranteed in the long term.

By integrating the liquidity plan into overall financial planning, the company can deploy its financial resources strategically and in a targeted manner.

Contribution of liquidity planning to corporate management

Liquidity planning plays a decisive role in corporate management.

It enables comprehensive control of the company's solvency, liquidity and financial stability.

A well-thought-out liquidity plan enables company management to make sound financial decisions, minimize risks and manage the company successfully

Risks and challenges of liquidity planning

The liquidity plan harbors risks and presents companies with various challenges that need to be overcome. The risks and challenges associated with payment targets and cash flows, the consequences of not adhering to the liquidity plan, the risk of insolvency and the importance of safeguarding the company's existence are highlighted below.

Payment terms and payment flows

Setting and adhering to payment targets is an important component of the liquidity plan.

The challenge is to set realistic and appropriate payment targets in order to optimize cash flow and avoid payment delays. Companies must continuously monitor cash flows and ensure that payments are received on time so as not to jeopardize liquidity.

Unforeseen cash flows also pose a challenge. Delays in incoming payments or unexpected outgoing payments can affect liquidity and require flexible management of liquidity reserves in order to avoid bottlenecks.

Risks and effects of non-compliance with liquidity planning

Failure to comply with the liquidity plan can entail serious risks and negative consequences. If payment obligations cannot be met on time, this can lead to financial bottlenecks, loss of trust among suppliers and customers and an impairment of business relationships. This can also result in increased financing costs, payment delays or even legal consequences.

Inadequate liquidity planning can also impair the company's ability to exploit opportunities and make strategic decisions. The lack of liquidity can hinder investments, restrict growth opportunities and impair the company's competitiveness.

Risk of insolvency and safeguarding livelihoods

In the worst-case scenario, inadequate liquidity planning can lead to the insolvency of a company.

If a company is unable to meet its financial obligations and does not recognize and deal with payment bottlenecks in good time, there is a risk of insolvency. Securing the existence of a company is therefore closely linked to effective liquidity planning. Solid planning is essential to minimize the risk of insolvency and secure the company's existence.

This includes careful monitoring of the liquidity situation, timely identification and management of payment bottlenecks and appropriate use of financing options.

Overcoming the risks and challenges associated with liquidity planning requires a proactive approach, precise analysis and continuous monitoring of the liquidity situation.

An effective liquidity plan helps to ensure the financial stability of the company and minimize the risk of insolvency.


Liquidity planning is a key tool for you to manage your solvency and financial stability.

The aim is to achieve an optimal liquidity position by analyzing and planning incoming and outgoing payments.

It plays an important role in various areas of the company, particularly in finance and investments.

Significance and future developments

The importance of liquidity planning will continue to increase in the future.

Companies will be increasingly reliant on precise management of their cash flows in order to adapt to the challenges of a dynamic business environment and ensure their financial stability.

Technological developments will support liquidity planning by providing automated solutions and data analysis.

Understanding the risks and challenges, such as payment targets and payment flows as well as avoiding the risk of insolvency, is crucial for successful liquidity planning.

Companies should ensure that they continuously monitor and adjust their liquidity planning in order to minimize financial bottlenecks and take advantage of opportunities to optimize their liquidity.

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