In addition to long-term integrated corporate planning, company management essentially requires short-term cash flow planning based on a weekly basis. This provides early warning of undesirable developments and serves as a basis for management decisions and measures.

Short-term liquidity planning shows all incoming and outgoing payments in the planning period. The planning period generally covers a period of three months or 13 weeks. The cash inflows and outflows are divided into three categories, which are characterised by different forms of planning period and probability of occurrence. A distinction is made between incoming and outgoing payments from receivables and liabilities, from orders on hand and order commitments as well as from sales and cost planning.

As receivables and liabilities are based on a partially fulfilled contractual relationship, e.g. performance in kind and outstanding payment, a short-term planning period with a high probability of occurrence can be assumed. When analysing the order backlog and order commitments, it is assumed that there is both a medium planning period and a medium probability of occurrence due to existing contractual relationships. In contrast, a long-term planning period and a low probability of occurrence are assumed for pure planning figures.

The difficulty in creating reliable liquidity planning lies in the mapping of fluid transitions between the three payment groups mentioned above and the situation-dependent formation of assumptions, particularly for payment targets and payment behaviour.

As a rule, liquidity planning is adjusted to new findings on a weekly basis and rolled over by one week. In this process, a plan/actual comparison is drawn up, which provides information on the reliability of the planning assumptions.

As experienced reorganisation consultants, we can quickly draw up a liquidity plan as a basis for decisions and check the plausibility of existing liquidity plans. A short-term definition of measures to improve the liquidity situation is the focus of liquidity management. In short, we are happy to support you with our many years of restructuring expertise in your liquidity-related challenges.