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Maximising Liquidity

Maximising liquidity is one of the most important challenges for your company. The time, money and effort required to achieve it every day they keep you and your team in a permanent state of stress.

The problem

Knowing at all times and with total precision how much money the company has is essential to make intelligent decisions. This is not easy because the availability of cash depends on many variables:

  • Balances in banks and investments, checks or payments in transit, scheduled collections and the reliability of clients and debtors are some components of cash availability.
  • Collecting and updating this information every day requires an huge effort, the cost is very high and the possible errors generate great uncertainty.
  • The information generated by other areas, the necessary controls to ensure its quality and the total time necessary to have it available compromise the fluidity of the operation, while causing the loss of great opportunities.
  • Additional work to establish the degree of certainty of collection and the time and effort to
  • Communicate it and translate it into cash projections further wear down the organization.
  • Link the availability of cash and the scheduled collection with the Payment needs is another task that demands a lot of time and effort.

Deciding on each occasion what to pay based on the available cash, the degree of certainty of the collection, the expiration of the commitments and the opportunities for benefits for prompt payment, when the best tools are not available, makes this process laborious, complicated and subject to many errors with its logical consequences, both in financial costs and in additional operating costs.

Finally, having to repeat the work done due to constant changes, coupled with the lack of well-defined operating processes and aligned with the appropriate tools for optimal information management, make the cost increase exponentially and get lost even more. opportunities

The solution

At the precise moment when your Products or Services are billed, LOVIS EOS automatically creates the corresponding Accounts Receivable, with the balance in the original currency and its value in national currency.

In the same way, as soon as the Supplier Invoice is validated, the account payable record appears in the Cash Flow with its balance in the original currency and its value in national currency. Both types of transactions are internally linked to the bank account with which they usually operate your receivables and payments.

So, all the effort necessary to collect, link and present the Cash Flow, is carried out by LOVIS EOS immediately and automatically. Regardless of whether it is tens, thousands or hundreds of thousands of operations, the effort is practically nil.

At any time of any day, we can access the Programming of the Cash Flow, select a bank account and view or Modify the schedule of pending collections, which added to the available balance of the bank account, immediately calculates the availability of cash. Next, LOVIS EOS shows the corresponding pending payments and allows us to modify the dates and scheduled payment amounts for each case, obtaining in a totally dynamic way a feasible payment program ready to be processed.

Once we have a cash flow schedule, we can go to the processes of automatic generation of income and expenses that are responsible for creating bank transactions for the programmed amounts, partially or totally settle the accounts as appropriate and calculate the differences will change; all in a few milliseconds per transaction.

Subsequently, the Treasury of the company may generate the electronic files to upload them to the electronic banking system or, issue the corresponding checks and reconcile the operations of each of the bank accounts in a very simple way.

That is all.

At the end of the day, these transactions will be automatically counted, making the effects to banks, customers, suppliers, exchange differences and VAT and other taxes for cash flow, fully automatically and effortlessly by people.

Now you and your team of collaborators will be able to focus their energy and dedication to identify opportunities to improve the financial performance of the organisation, they will be much more satisfied with their work and their results will increasingly strengthen your company.