What is meant by Liquidity overview?
The term "cash flow overview" refers to a detailed representation of a company's available liquidity over a specific period. It displays the inflows and outflows of funds, allowing for the monitoring and planning of financial resources to ensure that the company has sufficient liquidity to meet its obligations and operational costs at all times. The cash flow overview is a crucial tool for managing financial resources and avoiding liquidity shortages.
Typical software functions in the area of "cash flow overview":
- Automatic Updates: Automatic capture and update of liquidity data based on accounting and bank data.
- Cash Flow Analysis: Analysis of cash flows to understand the sources and uses of liquidity.
- Reporting: Creation of detailed reports and summaries on the liquidity situation for internal and external stakeholders.
- Forecasting and Planning: Generation of liquidity forecasts and plans to estimate future cash needs and surpluses.
- Visualization: Graphical representation of the cash flow overview through charts and graphs to quickly identify trends and patterns.
- Payment Deadline Monitoring: Tracking payment deadlines to ensure timely settlement of invoices and avoid late fees.
- Alert Systems: Automated alerts for impending liquidity shortages or deviations from planned liquidity targets.
- Integration with Other Financial Systems: Linking the cash flow overview with accounting systems and other financial reports for comprehensive financial analysis.
- Scenario Reporting: Generating reports for various scenarios (e.g., best and worst cases) to assess the liquidity impacts of different business situations.