Any accountant, financial director or business owner will tell you, one of the most important aspects of everyday business management is being able to effectively control company cash flow. With cash flow essentially representing the financial stability and solvency of a business, it is vital that companies have a clear view of their cash flow position at all times. To gain this insight, businesses will often take an in-depth look at revenue coming into the business in the form of sales and compare it against outgoings such as purchasing costs, employee wages and energy bills. Although this way of working offers businesses a snapshot view of their cash flow position at that particular time, as operations continue to run this view can quickly become outdated.
The problem is that when calculating company cash flow, many businesses will only include transactions that have already processed, rather than also considering those that are expected or planned to occur within the timeframe that they are observing. By not taking these transactions into account, companies will find that in reality their incomings and outgoings are actually more or less than they originally reported. This results in businesses working from a cash flow position that is not only quickly obsolete but also inaccurate as well. Therefore it is important that when determining company cash flow, businesses look to forecast their transactions as accurately as possible so that they can gain a truer reflection of their financial position.
Instant, Accurate Visibility of Your Cash Flow Position
With the ICAEW accredited OrderWise Accounts Module, businesses are already provided with an accounting solution that offers complete control and visibility of company finances. Now an incredibly useful new piece of functionality has been added to this module to provide businesses with the ability to both easily and accurately forecast their cash flow based on a number of different options.
Within the Accounts module under the Bank treeview node, businesses will find a new area for calculating company cash flow. Within the one-view grid, users will be able to add new cash flow forecasts or view all their saved cash flows which can also be amended if required. When adding or editing these new cash flow forecasts, users are provided with full control over which bank accounts are included or excluded from the totals. Across these bank accounts, OrderWise will look at three different transaction types when forecasting company cash flow for the chosen time period – anticipated transactions, scheduled transactions and manual transactions.
See The Information You Need With Flexible Control Over Time Frame & Transactions Included
Anticipated transactions are used to determine cash flow from outstanding sales and purchase invoices due, with these automatically added to the forecast as receipts or payments depending on their transaction type. OrderWise will then look at any scheduled transactions that are also due, which are any recurring payments or journals that also need to be included. The manual transaction option then gives users the freedom to include any transactions that they know are going to fall into the chosen time period, for example a new vehicle purchase. As transactional data is added OrderWise Accounts will automatically update the totals, allowing users to quickly generate and save an accurate cash flow forecast that offers them a clear insight into the company’s current financial position.
For businesses that then wish to convert this data into a simple-to-interpret chart, a new KPI dashboard is also accessible from this area that offers users the instant visibility of an overview of their cash flow. Users simply set whether they wish to view data on a daily, weekly or monthly basis and then the dashboard will display three separate charts that show businesses their cash flow, cash in and cash out in a format that’s easy to analyse.
With the addition of this fantastic new Cash Flow functionality to OrderWise Accounts, users are able to benefit from greater flexibility in how their company cash flow is both observed and calculated. By harnessing the power of OrderWise Accounts to increase the accuracy in how cash flow is forecasted on a regular basis, businesses can ensure that they always possess a true understanding of their financial stability.
What’s more, development is already underway on extensions to this Cash Flow functionality so keep an eye out for further enhancements being added in future OrderWise releases.
For more information on OrderWise including Accounts, you can download our brochure.
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To discuss your requirements in more details contact us today on 01522 704083.