Why cashflow?
Why Ebitly?

Money is the heart of any business

If company is running off the money then further activities will be complicated. The biggest problem is, when you do not know that you will be in trouble in near future. With a proper cashflow prediction tool you can save time to prepare your plans, and be prepared for turbulent times.

The current bank balance is not saying anything what happens tomorrow or day after. You need to see a bigger picture of your cash activities. Things are going more complicated, if you have a group of companies you need to mange. Then you want to see consolidated view of all your cashflows. Without a proper tool it will be time consuming to collect all the data from different accounting softwares.

Illustration of money

Know what will come, so you can take action

The problem is not only below zero cash balance. If you are sitting in money you can miss good opportunities. Knowing you have money surplus during next 12 to 18 months you can invest to marketing or hiring activities to grow business.

Same thing is with funding, if you do not know your cashflow for next period, you can take money too late or too early.

Both cases are bad, one leads you to liquidity issues and other can give a lower valuation. The best decisions are made based on data and educated assumptions.

Illustration of financial graph

Keep an eye on incoming and outgoing payments

Company's payables and receivables are critical for cashflow planning. Specially in turbulent times (e.g. crises). In accounting you see the overall picture of unpaid invoices but without manual effort you do not know when those will be paid.

In cashflow planning you can change expected due dates and see how it affects your overall cash position. If you see that your clients will be late, you can negotiate with your vendors to get a longer payment terms and again you see immediately the effect for your cashflow prediction.

Illustration of an eye

Get to know when you need a funding

In some cases the negative cashflow is not a problem. Many business models support spendings over revenue (e.g. high-growth strategies). But, in this case you need to know when and how much you are below zero. This helps to plan your next funding round or prepare for a loan.

If you are operating conservatively in high growth phase then your upside is not high enough. Thats why it is important to plan financing activities and the only proper tool for this is cashflow prediction.

Illustration of funding
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