Maintain visibility and manage cash flow easily with Sage

Posted: Thursday, June 18, 2020

Author: Zaid Rehman

As businesses emerge from the COVID lockdown one of the most crucial items for success will be maintaining cash flow and credit control. It’s even more important to review regularly to manage liquidity risk. Companies should immediately develop a plan for cash management as part of their overall business risk and continuity plans. Approaches taken to manage cash will have implications not only for your own business but also for your customers and suppliers.

Some recommendations

  • A 13 week rolling cash flow forecast is recommended which can be updated on a weekly basis. This will ensure full visibility of cash requirements for the quarter ahead and allow plans to change as needed
  • Calculations will be based on all incomings and outgoings on realistic assumptions that can be changed to update the forecasts as needed
  • Having real time financial information readily available can really help you quickly assess your cash position and calculate realistic projections
  • Communication is key with customers and suppliers to know when you’re likely to receive payments from your customers and when you will need to pay your suppliers. Some businesses are working together with their customers and suppliers to work out payment plans so it’s a win for all parties. You may also need to allocate more resources to collecting debts in order to survive in the coming months.

To help maintain visibility and manage cash flow easily, Sage provides a user-friendly Cash Flow Enquiry as part of its Cashbook Module. Cash flow elements are taken from the bank accounts, sales and purchase ledgers, sales, and purchase orders, nominal budgets and manual ad-hoc income and expenditure entries, VAT due/to claim. For those using our construction solutions, information is also included from contracts, applications and retentions.

Using simple drag and drop features, transactions can be adjusted in the cash flow interface to reflect the expected cash impact without changing the due dates and promised dates manually.

In addition to the standard features, we can offer a number of Sage approved add-ons. These additions provide enhanced functionality which can make life even easier for your credit controllers and management accountants. Why not get in touch with me today so we can discuss your requirements in more detail.




DDI 01708 330217


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