Coresystems presents another important tool for SAP Business One: The coresuite liquidity package, which helps to keep an eye on the company's cash flow.
Manage cash flow proactively
The coresuite liquidity package is aimed at companies that want to Liquidity proactively. With the coresuite liquidity package, SAP Business One users can create forecasts (liquidity forecast), perform historical analyses (cash flow statement) and calculate the average payment delay of their customers (customer payment behaviour). This late payment can be taken into account in the liquidity forecast. In contrast to the standard SAP cash flow report (Modules > Financial accounting > Financial report > Actual reports > Cash flow), the liquidity forecast can also take into account orders, purchase orders, deliveries, parked documents and all other SAP documents.
Payment by instalments in terms of liquidity
With the function for defining instalments, you can divide purchase or sales documents into several instalments before creating the invoice document. This allows you to spread large cash outflows or inflows over different periods.
The coresuite liquidity package consists of three reports and the function for defining rates. The three reports are:
- cash flow statement
- Customer payment practices
- Liquidity forecast
Why managing cash flow is so important
With an accurate cash flow statement, you know exactly how much cash you have available at any given time. This is crucial because any plans and decisions you make need to be supported by accurate information. If you don't manage your cash flow carefully, you could make poor decisions that put your business at risk. You might feel that your business is doing well, but a cash flow statement might show that there isn't much money coming into the business in a particular month. This could be because you haven't invoiced customers. Whatever the reason, with an updated cash flow statement, you know that you don't need to make any major purchases at this time.
Managing your cash flow effectively will give you a better overview of what you're spending your money on - something that's important in a Profit and Loss Account is not to be found. It's important to know exactly where the money you're spending is going and why. It's not always easy to see expenses in black and white, and that's why it's so important to manage cash flow effectively. You may be able to identify areas of the business where you can cut costs.
If you have cash flow problems, you may not have the funds available to pay your suppliers. This can affect business relationships with your suppliers and damage your overall reputation. Establish payment plans to ensure that you have the funds available to pay your suppliers. It is important that you plan ahead so that you are not faced with multiple invoices at the same time that you do not have the funds to pay.
Growing and expanding your business is exciting. It means new markets, new employees and more revenue. But a word of warning. If you expand at the wrong time or in the wrong way, you're likely to run into problems in the long run. Growth requires a lot of money. Buying inventory, renting buildings, hiring employees and purchasing computers all have to happen before the money starts flowing in. If you don't have the funds you need to grow, you're going to have problems. If you manage your cash flow effectively, you'll know when the time is right.
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