Liquidity Management Solutions

 

 

The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.                                                                             Chris Chocola 

Finally – a unique set of liquidity management tools really do empower business and treasury to get it right. PowerStrat Liquidity Management Solutions provides specialised software and support to clients who would like to get better control of cash-flow and stop leakages from the cash flow system both in the short term on a daily basis to the long term on a monthly an annual basis.

The methodology incorporates the short term cash flow forecasting to long term funding requirements and plans. The cash related items within the total organisation (not only treasury) are user driven and can also include non-cash working capital items to reflect working capital behaviour and position for comprehensive working capital management.

Extrapolation of short and medium term budgets or scenarios into long term view (can be as long as 30 years) using comprehensive statistically driven predictive analytic methods to assess the business viability and sustainability from a funding as well as a performance perspective. This tool also provides

assistance in the viability assessment of new strategies, projects or products.

The ability to judge the affordability of annual budgets and the monitoring thereof against actuals and revised forecasts through the financial periods have never been easier.

PowerStrat Liquidity software is a module that pulls data from your existing accounting systems and provides full independent liquidity risk management capability without affecting your data existing data. The dashboard components provide cut and dice perspectives from different components of the cash flow cycle. 

The software can be implemented as a pure strategic tool for determining funding requirements or performing viability assessment, or it can be implemented as an operational cash management tool which elevates into a strategic tool. The value of the software increases exponentially when it is incorporated into the cash management and budget monitoring and evaluation processes of the organisation.

This is a highly practical everyday use tool for business units and head office treasury function.

Services include:

  • PowerStrat Funding Model Software (including annual budgets)
  • PowerStrate Cash Management Software (including cash flow forecasting)
  • Liquidity Risk Management Dashboard
  • Hands-on managed support from total outsourcing to total client managed
  • Training
  • Implementation
  • Support

Cash Management Software (Cash Flow Forecasting)

PowerStrat Cash Management Software tools are designed for the persons responsible for managing the day to day cash and liquidity requirements of an organisation. It incorporates all the cash relevant activities and provides for a rolling combination of daily and weekly time periods.

The information as presented indicate the short term cyclical patterns and short term cash surpluses or requirements to allow management to take the necessary actions in delaying, expediting or financing the outcome. The detail in the various structures defined by the organisation allow management to drill down to the events causing the undesired results. The effect of action plans can therefore both be monitored on a short term as well as long term basis.

Variance analyses between forecast and actual results supports management decisions and plans as well as providing institutional knowledge and intelligence by improving accuracy of forecasts.

The product can utilise any existing ash flow forecasting systems and information already available in the organisation (in any electronic format) or alternatively can be customised and provided to the organisation. 

 Funding Model Software (Budget, Actual & Forecasting)

PowerStrat  Funding Mode Software tools cater primarily for annual budget, actuals, forecasts and scenarios on a monthly basis for a multi-year period on a rolling basis. It is designed for the management to assess the financial affordability of their budgets and the performance evaluation in tracking the actual results against the budget or alternatively against a revised forecast or set scenarios.

It incorporates all aspects of liquidity including non-cash working capital to ensure cash management is not done on a silo basis and reveals cash trapped in debtors and inventory. It provides valuable information on the behaviour of creditors and debtors. Working Capital as the most efficient source of funding in any organisation can truly be exploited with this tool.

The information as presented indicate the monthly, seasonal and annual term cyclical patterns and funding requirements to allow management to take the necessary actions in delaying, expediting or financing the outcome. The detail in the various structures defined by the organisation allow management to drill down to the events causing the undesired or desired results. Funding requirements can therefore be addressed in terms of quantum, timing and duration. The cost of the finance are included back into the model to illustrate the ability to finance and repay such financing arrangement.

Financial sustainability or financial viability assessments are easily performed with this software set to allow management to take the appropriate strategic decisions. The various structures as defined by the organisation allow management to assess the sustainability at any of the following levels entity, product, strategy, country, cluster, etc.

The product can utilise any existing budgets, actuals and forecasting systems and information already available in the organisation (in any electronic format) or alternatively can be customised and provided to the organisation.