{"id":57288,"date":"2024-05-22T11:38:48","date_gmt":"2024-05-22T09:38:48","guid":{"rendered":"https:\/\/mf.ag\/?page_id=57288"},"modified":"2024-08-08T15:16:19","modified_gmt":"2024-08-08T13:16:19","slug":"liquidity-planning-cash-management","status":"publish","type":"page","link":"https:\/\/mf.ag\/en\/liquidity-planning-cash-management\/","title":{"rendered":"Liquidity Planning and Cash Management for Your Company"},"content":{"rendered":"\n

We can assist you with all aspects of liquidity planning and management, from setting up a direct 13-week liquidity plan or an indirect 12-month liquidity forecast to fully taking over all cash management activities within your company. We can advise you on establishing a “Cash Office” or, if needed, take on operational responsibility through an interim manager.<\/p>\n\n\n\n

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Sufficient liquidity is the lifeblood of any organization.<\/p>\n<\/blockquote>\n<\/div><\/div>\n\n\n\n

In restructuring situations, all processes must be reviewed with regards to their impact on liquidity<\/h3>\n\n\n\n

The first step in restructuring is to stabilize the company’s finances before working on a sustainable realignment. The focus must be on maintaining the company’s solvency. To achieve this, it is essential to gain an overview of the current liquidity status and the expected liquidity development. All business processes need to be “translated” from their impact on earnings or the balance sheet to their effect on liquidity.<\/p>\n\n\n\n

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Let us know which challenges your business is currently facing!<\/h6>\n\n\n\n
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<\/i>Get started<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

Securing short-term liquidity <\/h3>\n\n\n\n

In order to secure short-term liquidity, it is advisable to implement a direct 13-week liquidity plan (one quarter). Typically, incoming and outgoing payments are planned on a weekly basis. In some situations, daily planning is necessary to ensure solvency. The 13-week liquidity plan is an effective tool for active liquidity management. Based on the plan, cash inflows and outflows can be managed to ensure sufficient liquidity over the entire period. This can be achieved, for example, <\/p>\n\n\n\n

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Cash is king!<\/p>\n<\/blockquote>\n<\/div><\/div>\n\n\n\n

Long-term liquidity management<\/h3>\n\n\n\n

In addition to short-term liquidity, it is important to keep an eye on long-term financing over the next 12-24 months. This is usually done by indirectly deriving cash flow through profit and loss statement and balance sheet planning. However, even with a longer-term horizon, it is advisable to enhance the standard indirect planning model with a direct forecast for improved planning quality. The level of detail in a 12-24 month planning is generally lower than in the 13-week liquidity plan, and cash inflows and outflows are planned on a monthly basis. This 12-24 month liquidity planning allows for the early identification of potential future capital shortages, enabling the implementation of appropriate measures, such as asset sales or capital and financing actions. As such, the 12-24 month liquidity plan serves as a central management tool.<\/p>\n\n\n\n

Institutionalizing liquidity management<\/h3>\n\n\n\n

In many cases, it is recommended to consolidate all liquidity-related activities within a “Cash Office” that reports directly to management and is staffed with representatives from various departments (treasury, receivables management, controlling, etc.). The cash office is responsible for both planning and monitoring the liquidity situation as well as for active management. Establishing a cash office creates clear responsibilities and ensures that liquidity management receives the attention it deserves.<\/p>\n\n\n\n

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How can we help?<\/h2>\n\n\n\n

A sudden vacancy? Lack of leadership? A need for a turnaround? Or a need to achieve growth and results?<\/p>\n\n\n\n

Our Interim Managers have at least 15 years of experience in leadership roles and are specialized in overcoming challenges similar to yours. They step in and start delivering results from day one with great leadership and drive \u2013 exactly when you need it.<\/p>\n\n\n\n

For more than 20 years, we have been helping companies in Austria and the DACH region to identify the best Executive Interim Managers and experts available.<\/p>\n\n\n\n

Let us know how we can help!<\/p>\n<\/div>\n\n\n\n