In this article
Some time ago an interesting blog appeared on the well-known Dutch website softwarepakketten.nl with the title: does your accounting software offer a real liquidity planning?
This is a very relevant topic, in times of Corona crisis, but also afterwards.
Our version Banana 9, which contains numerous possibilities for budgeting and financial planning, turned out to score favorably with regard to the requirements for liquidity planning.
Without point by point elaborating on the whole list of requirements, which you can find in the article above, we would like to highlight that Banana's liquidity planning can take into account, among other things, the "planned payment of salaries and payroll taxes" and "financial obligations" (such as rental contracts, lease obligations, etc.).
As Banana Accounting's planning system is based on the Double-entry accounting method, you can get started fast and easy with the financial planning in the Budget-table, in your own Banana accounting file in which the complete chart of accounts is already in place.
All possible situations, expenses and obligations can be planned and entered, complete with a start date, and, where applicable, periodic repetitions and an end date.
If you enter the planned income (operating income, income from bank loans, etc.) as well, then you get a very complete overview and you can see exactly how much and when your expenses will be higher than your income or vice versa. If we apply this to a startup, then in the first case it is probably necessary to provide a larger amount of starting capital; in the second case (you have money left over), you may be planning to make a much needed business investment at that time.
As the planning takes place in the accounting file, a comparison of the actual figures with the budgeted figures can be realized in a just couple of steps.
The information that a good liquidity planning provides is therefore crucial for the success of your business or your self-employed activity.
The " how to " is described in detail on the Banana website, through program technical info; check the section Budget and Financial Planning, that includes step-by-step tutorials such as Starting a new financial planning and Creating a liquidity plan that covers the entire event, from the initial settings to the report with the results.
There are also numerous ready-to-use templates, including one for a Cash Flow planning that can also be used in Free Version.
Whatever your choice might be, you can get started right away!