Rethinking Liquidity Planning to Manage the Cash Lifecycle
Underwritten by Kyriba
With the use of APIs, artificial intelligence (AI) and data analytics, cash forecasting is evolving into a more proactive liquidity planning process.
Liquidity planning uses the same forecasting techniques that allow you to model the impact of a range of strategic decisions on future cash and liquidity positions. This guide breaks down how using a liquidity planning approach can transform decision-making both in the treasury department and throughout the whole organization.
Download the guide and dive into:
DOWNLOAD THE EXECUTIVE GUIDE
CASH FORECASTING DEFINED
At its most fundamental, a cash forecast is a prediction of a company’s cash position at a particular point in time in the future. Cash forecasting is improving because treasurers have access to a wider range of more reliable data than ever. Three key technological developments have been crucial:
- Data is more accessible.
- Data unknowns can be forecast with more accuracy.
- Data can be manipulated instantly.
LIQUIDITY PLANNING
Instead of the old model that used static data to forecast positions, liquidity planning incorporates dynamic data that recognizes that a change in one variable has implications for others.
Download the guide to find out:
- How liquidity planning differs from cash forecasting
- How to build a liquidity planning model
APPLICATIONS OF LIQUIDITY PLANNING
Understanding the potential benefits of a liquidity planning approach is an important first step in its adoption. Applications of liquidity planning include:
- The changing dynamic of the treasurer
- Holistic decision-making
- A more strategic treasurer
- Data storytelling
- Access to non-traditional inputs
BUSINESS OUTCOMES REALIZED VIA LIQUIDITY PLANNING
While liquidity planning has the potential to improve decision-making, the real benefits are from measurable improvements in business outcomes which include:
- Free cash flow
- Balance sheet efficiencies
- Increased return on cash
- Protect financial statements
- Access to more levers to execute corporate actions
- Setting relevant targets
Published September 26, 2023