What is meant by liquidity analysis?
A liquidity analysis is a process for evaluating a company's financial situation by examining its ability to meet short-term financial obligations. It helps to identify potential payment bottlenecks at an early stage and ensure financial stability.
Typical functions of software in this area are:
- Automatic recording and categorization of incoming and outgoing payments
- Creation of cash flow forecasts
- Calculation of liquidity ratios
- Visualization of liquidity trends using charts and graphs
- Scenario analyses for various business developments
- Integration with accounting and ERP systems
- Real-time monitoring of account balances and cash flows
- Automatic notification of critical liquidity thresholds
- Comparison of planned and actual values
- Reporting functions for management and stakeholders
