When it comes to financial management in any form of business, it is generally said that “cash is king.” Managing cash flow is critical in any firm, whether expanding or struggling. According to one study, nearly 60% of lucrative businesses simply ran out of funds. If a company utilizes a large portion of its working capital, it may experience a cash shortage if it is not properly managed, prohibiting it from paying suppliers, paying salaries, or purchasing products. Because collecting money from clients is difficult, there is always a delay in paying suppliers, and the only answer is cash flow management.
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What is Cash Flow Management?
Cash flow management is a method of controlling the entry and outflow of funds in a business. The fundamental goal of cash flow management is to keep the incoming cash flow higher than the outgoing cash flow so that the business stays in the black. Cash flow management also functions as a support role for ensuring that surplus money is appropriately invested or kept in order to maximize the value of blocked capital. Any business’s lifeblood is cash. When the money stops flowing, all critical operations might come to a halt.
The primary purpose of cash flow management is to prevent financial shortages in the company. No company should be in default with its creditors. It also can’t have any long-term debtors on its records. The occurrence of such situations indicates that the cash flow management needs to step in.
Highlights of Cash Flow Management
- Predict Shortfalls– The first and foremost advantage of controlling cash flow and working capital is knowing when you will have gaps ahead of time. If you have a good system in place, you may foresee deficiencies weeks in advance, giving you plenty of time to devise a new strategy.
- Reduces stress– Cash flow management relieves a lot of stress. Many entrepreneurs have anxiety difficulties when it comes to paying bills since they don’t know what’s going on and are worried about whether or not things will work out. Even if the prognosis isn’t promising, it’s better to be prepared.
- Provides Accuracy– Cash flow management is thought to be more precise than budgeting. Budgets describe what you intend to do, but cash flow predictions describe what really happens, even if it differs from the plan you set at the start of the year. Almost everyone believes that by not controlling cash flow, we would be able to handle everything. However, staying on top of your finances with cash flow management will make you feel better.
Top 5 Cash Flow Management Software
Caflou
Caflou is a powerful business management system that gives you ultimate control over your company and team by allowing you to manage anything online. It rationally and electronically integrates your projects, customers, offers, timesheets, tasks, invoicing, cash flow, and orders.
Caflou allows you to manage your entire business and personnel in one system, as well as organize your cash flow and business processes. You can figure out where you can save money, keep track of your team, and manage projects. You can immediately see which operations, clients, or projects create revenue.
Key Features
- Task Management and Responsibilities– CAFLOU’s smart responsibilities feature assists you in managing your teams. You may assign tasks to each team member and ensure that everyone is aware of their responsibilities and deadlines and is on the same page throughout the project development process. Smart notifications and alerts, mentions, tasks, comments, integrated live chat, and video conferencing are all options for team members and collaborators to interact.
- Team Performance Management– This feature helps you to keep track of and manage the performance of your employees and teams. It gives you the tools you need to keep track of which individual team members and/or teams are performing well and bringing in the most money for the company. The economic report of the team contains this information. You may also use the workload reports to see how much work each team member is performing.
- Sales Lifecycle Management– From customer overview and invoicing to managing offers and order fulfillment, this CAFLOU tool gives you complete control over your sales activity. Everything is logically connected, including projects, timesheets, and the organization’s cash flow. This feature will provide you with a detailed picture of your sales process.
Pricing
Caflou provides trial/premium subscriptions with monthly payments beginning at $11.00. It does not offer any free plans. However, it does offer a trial period during which you can evaluate the service before committing to a premium membership.
Pros
- It is easy to use, with excellent reporting and all of the tools needed to manage the majority of business activities.
- Creates and shares invoices quickly and effortlessly.
Cons
- It cannot export excel tables from cashflow modules.
CashController
CashController is a financial program that helps you manage your cash flow. CashController is in charge of all cash-related activities for a registered client. This includes everything from real-time cash flow analysis to budget spreadsheet maintenance and cash collection for projects of various sizes.
SMEs, wholesale wholesalers, accountants, transportation, services, start-ups, ICT firms, and webshops are just a few of the prestigious clientele who use the program. It also has clear and dynamic dashboards, understandable reports, drill-down to the invoice level, and extensive simulations.
Key Features
- Digital Asset Management.
- Digital Experience Platforms (DXP)
- Enterprise Content Management (ECM)
- Headless CMS.
- Knowledge Management.
- Localization.
- Mobile Forms Automation.
- Web Accessibility.
Pricing
The pricing details have not been provided yet.
Pros
- CashController monitors and records all cash sources in a firm, which are typically service sales.
- Furthermore, CashController guarantees that a business’s cashout is adequately described and that documentation such as receipts for backup is included.
Cons
- When a corporation uses cash, CashController takes extra measures, which slows down several activities.
Payference
Payference is a cash management platform that helps CFOs and finance teams manage and forecast cash more effectively. It connects seamlessly with ERPs and bank accounts to bring all of your financial data together in one place. Payference IQ is a feature of Payference that helps you unlock cash by improving payables and receivables.
You can automate data entry and repetitive tasks, allowing your finance department to focus on higher-value tasks and improve your collections. You can generate easy-to-understand reports for your executive teams and boards, as well as reconcile payments with bank transactions. Payference provides you with a comprehensive image of your current and future cash status, helping you to make more informed decisions.
Key Features
- Accounting integration
- Aging tracking
- Bank Reconciliation
- Billing & Invoicing
- Cash management
- Online payments
- Reporting & Statistics
- Collections management
Pricing
Pricing details are not provided by the vendor right now.
Pros
- Payference gives a full explanation of a company’s various cash sources and outflows in expenses.
- It explains how to make sure the proper amount of money is spent and that the inflow is maximized.
Cons
- Payference is technical, with some accounting computations which may not fit semi-skilled individuals
Strands BFM
Strands BFM provides bookkeeping and accounting services to SMEs who collaborate with banks.
The tool primarily addresses three issues:
- There’s the issue of money management.
- Obtaining a financing agreement.
- They must successfully scale their enterprises.
The software solution generates a product sheet that banks and consumers may use to learn more about the type of business and how its finances are managed. Strands BFM then analyses and utilizes the type of consumer an SME has and then devises a financial strategy to match. Furthermore, the system monitors the success of businesses, analyses their advantages and disadvantages, and then incorporates them into financial management.
Key Features
- Transactions Enrichment
- Financial Calendar
- Insights & Notifications
- Scheduled Transactions
- Invoicing
- Third-Party Connection
Pricing
For this product or service, Strands BFM has not given price information.
Pros
- The system is self-explanatory, and the user interface is simple to use.
- It’s a fantastic software for someone with little experience, and the help file is comprehensive enough to get someone started and show them the ropes.
Cashforce
Cashforce is a cash forecasting tool that uses working capital analytics to automate the process. It enables proactive cash savings through greater cash forecasting accuracy, making actuals vs. forecast analysis simple, thanks to smart logic and AI/ML. Cashforce provides automated data aggregation, logic, and simple processes to help you manage and save time in your forecasting process.
Outside of the treasury department, you can gain extensive insights into working capital drivers and improvement opportunities that result in working capital savings. Machine learning technologies are available on the platform to assist you in enhancing the accuracy of your cash forecasts. You can automate your company’s cash forecasting process and make manual changes in the same manner as you would in Excel.
Key Features
- Roll-up from local to global level
- Smart forecast modeling
- Out-of-the-box ERP connectivity
- Easy manual adjustments
- Leverage AI & machine learning
- Organize your workflow
Pricing
It has not provided the pricing details yet.
Pros
- The forecast’s precision is incredible.
- Since the UX is so clean, it’s very simple to pick up.
Cons
- When compared to small and medium businesses, the product is a bit pricey.
Conclusion
Cash flow management is the practice of keeping track of how much money enters and exits your company. This enables you to forecast how much money your company will have in the future. In this article, we talked about cash flow management software and the 5 best tools to use it.
