Only those who can pay every invoice on time count as solvent. That is why it is decisive for every company always to keep both in view: the size of the obligation and the date it falls due. Both pieces of information have to be processed reliably in the accounts. Only then does a business know the current status of its liquidity. That way it can recognise in good time when payment problems are building up or when it is already unable to pay.
But our experience shows that this important data is often not fully available. In many cases there is then no time left to make up the information deficit, with far reaching consequences. The liquidity status is the essential basis for all further financial planning.
How solvent is a company? Determining the liquidity status
We establish where your liquidity currently stands with a liquidity status. Determining it on a given date follows a simple principle: all available liquid funds are set against all payments out.
But given the sheer volume of data and the number of factors involved, determining it can be very complex. THE MAK'ED TEAM first makes sure that all the data is available. That is why the question at the very beginning is: are your accounting and finance up to date? Has everything been posted and evaluated? Where does the data on receivables and payables come from? If you outsource your bookkeeping, we check whether all data has been transmitted up to date and securely. Only when all the information on payments in and out is recorded up to the current day can we determine the liquidity status and judge whether further checks are necessary or not.
Would you like to know more? Here you can find an overview of how we determine the liquidity status: https://9149216.fs1.hubspotusercontent-eu1.net/hubfs/9149216/Whitepaper/THE%20MAKED%20TEAM_Whitepaper_Ermittlung%20des%20Liquidit%C3%A4tsstatus_Teil2.pdf
You can find part 3 of our series here: part 3, planning ahead
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