Liquidity Planning

Cash is King is the motto that indicates how important liquidity is. It is the main engine for carrying out business activities, meeting commitments and producing profits. To invest safely, it is essential to evaluate the ability to produce liquidity and its evolution over time a rational way.

The financial forecast of Banana Accounting is an important business management tool, which allows you to understand if there will be enough financial means to meet commitments and reduce your debt exposure to the maximum.
Liquidity projections are calculated on the basis of the initial balance and forecasts included in the Budget table. When a budget movement is changed, the forecasts are instantly updated. You run simulations, assign a payment, add an investment, modify sales and see how liquidity evolves.

Liquidity values can be displayed in several ways.

Accounts table

Set up accounts and liquidity groups in the Accounts table. In the Budget column you will also see the updated forecast balances for the accounting period. At a glance you will know what the liquidity situation will be at the end of the year.

Evolution graphs

When you open the Graphs window, positioning the cursor on an account or a group you will see the graph of the evolution of Liquidity.
If you click on the Current, Previous or Estimate caption, you can hide the graph.

Account card with estimate data

Using Account card command you have the possibility to see in detail, day by day, how liquidity evolves. You can see all the movements that have an impact on liquidity.

The Account card command allows you to specify if you want to see current or budgeted movements.

• Select budget movements.
• Set the period
  If you indicate a period that exceed the accounting period, the program will automatically generate Forecasts over several years.
• If you indicate a group, you will see the movements of all the accounts belonging to that group.
• When you are in the Budget table, you can access the account card with a click on the icon next to the account.

Enhanced Balance sheet with groups

Through Enhanced Balance Sheet with groups you may select to work with values subdivided by column per period. In this way you can see the evolution of liquidity by day, week, month, quarter, semester, year, etc.

• In Columns section indicate that you wish to view the Budget values.
• In Sections you can select the accounts or groups you want to include in the printout.
  You may select to display the asset and depreciation accounts only.
• Set up the Period.
  If a period that exceeds the accounting period, is indicated, the program will automatically switch to budgeting over several years.
• Indicate the subdivision by period required.
• If you think you're use this print setting again, create a Composition.

Accounting Report

The Accounting Report is similar to the one for Enhanced balance sheet with groups, with the difference that the display takes place in the Accounts table in columns.
 

You can therefore use it to get an instant view of the evolution of liquidity accounts.