Controlling your cash flow in an organized and methodical way is of utmost importance for the proper functioning of any business. Improper handling can even lead to the failure of the company, therefore, a series of technological solutions have emerged that allow optimizing the management of this task.
To elaborate on the state of your cash flow, it will be essential to have the necessary data on the income and expenses of your company. Another important aspect will be the organization of such information, since that way you will be able to know the balances of the interest period and project the expected liquidity for the future of the company.
Consider that the cash position and, therefore, the liquidity of your company, will be crucial to avoid future conflicts in the administration of your business. Liquidity problems will not necessarily be related to the benefits of your company, or even to the number of customers that buy your products, but will affect its structure. If you do not have the necessary liquidity, you will not be able to face your company’s payment commitments and that could even lead to bankruptcy.
To summarize, we will say that the cash flow is an indicator in which all the financial movements of a business are recorded, which in simple words means subtracting all the payments made in a period, to the resources that your company generated in the same. The difference between collections and payments is what we then know as “net cash flow”.
See here some benefits that cash flow functionality could bring to your company:
1) It will not be necessary for you to perform tedious installations, a billing software that includes cash flow functionality will avoid double installation work and, therefore, you will save time.
2) You will keep an exhaustive control of the collections, which will start from the moment of invoicing.
3) You will review your expenses in detail, both in relation to your need and to the times and forms of payment.
4) You will make realistic forecasts that cover all costs.
5) You will monitor bank accounts on a daily basis, which will allow you to detect unforeseen payments and monitor those that were.
It is also important to consider that, due to a large number of administrative software that currently coexists in the market, it will not be easy to make a decision as to which one will be the most suitable for your company. In this sense, we recommend that you inform yourself as much as possible and that you make a comparative chart between the functionalities and features that each software will offer you.
In the case of calmed central billing, for example, you can not only manage the cash flow in the manner mentioned above, but you can also:
- Find it in the same calmed central billing Software, without the need for additional charges or double installation.
- Access a chart that is done automatically and projects your company’s cash flow as you make purchases and sales.
- Manage a chart that will allow you to see: 1) What you have to collect 2) What you have to pay. All in a range of up to 6 weeks.
- You can also add data that is not automated in the cash flow, for example; salaries, VAT, PPM and Fees.
- If you want to access the list of the invoices that appear in the graph, it will be enough to click on the area that interests you and you will get the detail.
- You will handle the software as you wish, therefore, you can change payment dates for graphic purposes.
- Obtain greater visibility and clarity regarding the money of your companies.
- By having more clarity about the figures, you will make better decisions.
The accounting and billing solutions offered by calmed central billing will facilitate liquidity control of your business. It doesn’t matter if your company is small, medium or large, calmed central billing will surely have a plan that suits your needs. Remember that this system will be essential, both for an accountant and for an entrepreneur.