Financial diagnosis is essential for formulating an effective Management Plan to address liquidity challenges in times of crisis, a resource that greatly helps in the financial health of companies.
In this sense, many companies have had to resort to this resource, but not all of them take it into account, which means that dealing with liquidity problems becomes an uphill struggle…
The economic uncertainty resulting from COVID-19 has forced many companies to establish cash flow forecasts .
At this point, financial planning has become a vital tool for detecting and addressing future needs. But not all companies take this management tool into account to georgia email list deal with a foreseeable lack of liquidity .
How can treasury management help a company in difficult times? In this article we give you all the keys.
Start of marked textConducting a cash flow study can provide clear solutions to survive the situation caused by COVID-19.End of marked text
The importance of treasury management for companies
Below we detail the main values that treasury management brings to companies, regardless of whether or not they operate in times of crisis.
You get a global view of your company's situation
There are technological solutions for treasury that help a company's financial forecast to have a global reach. With the help of this type of software , red figures and budget deviations can be avoided.
It serves as an instrument for financial decision making
The data obtained from your company's financial analysis can better guide the treasury department in making decisions regarding profitability, solvency and risks .
You eliminate liquidity tensions
Liquidity tensions, which ultimately lead to solvency problems, arise when the treasury cycle is disordered, with a “lack of rhythm”. Good financial planning allows you to control and organize this cycle, where not only technology is key, but also the CFO’s skill in using it.
You can make exhaustive economic budgets
This will allow the company's real needs to be determined without errors, for example, when requesting from the ICO Lines the amount of financing that best suits the needs (that is, that does not exceed or fall short).
You control what you sell and charge
Despite having exceeded initial sales expectations, many companies have had to file for bankruptcy because they have not been able to control collections, as well as when and how to do so. A good ERP can help you enormously in this task.
It allows you to identify delays and deviations in collections and payments
Generally, billing and payment operations are carried out automatically. But when working with a high volume of transactions, delays and deviations in the billing process are common.
To identify these incidents, it is necessary to have the greatest visibility and speed of action possible to collect 100% of what you are owed. The best way to achieve this is by using management software that allows you to keep liquidity and credits under control.