Bye-bye, Excel! Advantages of automated liquidity planning
A bulky Excel spreadsheet, endless rows filled with small-scale items. A column for each month, a new spreadsheet for each year. Many numbers, little overview – and what did that complicated formula stand for again? Do you know this feeling?
In the ideal case, this semi-automated Excel construction is a well-maintained and preferably up-to-date liquidity plan. In the worst case, individual items are missing because the colleague from the marketing department, who is responsible for the budget, is currently on vacation. Perhaps a wrong digit crept in between two phone calls, while maintaining the table. Maybe one colleague has overwritten the entries of another. Small mistakes, which can have a big impact. Liquidity planning should ensure the economic existence of a company through clear information on liquid funds and early assessment of risks – and not lead to wrong conclusions.
Such (very human) mistakes can be avoided if you switch from the traditional Excel spreadsheet to a liquidity management software that not only clearly depicts your current liquidity, but also creates transparency about income and expenses without much effort – for all budget managers of the team, as well as for decision makers.