Liquidity planning - what is it about?
Why is liquidity planning so important for companies?
Without sufficient liquidity, everything is nothing. Insolvency endangers the continued existence of a company and thus the jobs of all employees. Insolvency occurs when a company is unable to pay its mandatory due liabilities. To avoid this scenario, the company's liquidity has to be managed permanently.
„If a company loses its solvency, everything up to now has been in vain“
or positively expressed:
„Securing solvency ensures the continued existence of the company“
If incoming cashflows are not sufficient to pay the expenses, measures must be planned in time to avoid insolvency. Cash managers regularly fulfil the task of securing liquidity by ensuring sufficient cover in accounts as part of daily financial planning.
Every day anew: cash management and forecast
To optimally manage liquidity, it is therefore important to know which funds are available at which point in time.
These funds can be immediately available, but may also exist
- in the form of loans with various maturities and
- in different currencies or
- committed as deposits, investments or collateral
and thus be present but not available without limitation.
The starting point of cash management is the ongoing determination of available liquidity, which consists of account balances, available assets and credit lines. From day to day, one looks at the daily financial status and the cash forecast for the coming days. In the medium to long term, liquidity planning is used.
So that you don't lose the overview, the Trinity TMS Treasury Management System helps you to keep an eye on all of your company's cash flows and financial transactions.
Liquidity planning - What are the challenges?
The 7 biggest challenges to securing corporate liquidity are:
Liquidity planning - How does Trinity TMS support you?
Trinity offers a web-based and thus globally usable software solution for planning and controlling liquidity. The modular treasury management system takes into account payment flows from financial transactions as well as operative cash flows.
To manage the company’s financial deals, the resulting cash flows and for effective risk management, the system offers a variety of modules:
- Cash management
for short-term account-based preview and disposition - Currency-differentiated liquidity planning
for medium- to long-term planning in categories - Contract management
for the administration of financing and investments on the money and capital markets - Foreign exchange management
for the administration and valuation of fx hedging instruments - Interest rate derivative management
for the recording of interest rate hedging instruments - Commodities Management
to reflect cash flows deriving from acitivites to hedge commodity risks - Monitoring of limits and credit lines
- Digital guarantee management
to keep an overview of sureties and guarantees - In-house bank
as a cost-effective alternative to local banks - Multilateral netting
to offset intercompany receivables and liabilities - Payments management
for the secure processing of account transfers and treasury payments via standing settlement instructions - Account assignment
for automatic posting of account transactions in the ERP - An integrated reporting system
for evaluations, simulations and dashboards
Thanks to the complete integration of all modules with each other, the cash flows from all financial transactions are immediately visible for liquidity planning. Enriched with additional planning data, which is automatically imported from various sources in the background, a reliable database is created for controlling and securing the company's liquidity.
For efficient daily account planning, the Trinity TMS cash management module determines clearing proposals based on predefined rules. Time-consuming routine tasks such as importing and updating plan data, reconciling bank statement positions, etc. are replaced by automated processes, leaving the cash, treasury and risk manager more time for the essentials.
The administration of financial deals takes place in treasury management, which usually also includes risk management for the assessment of losses due to the volatility of foreign exchange rates, commodity prices and interest rates and even default risks to a greater or lesser extent.
The inclusion of current foreign exchange rates, interest rates and other risk factors provided by market data providers helps to assess the risks in the decision-making process for optimal liquidity planning. Currency-differentiated liquidity planning in Trinity TMS then provides the necessary overview for global exposure management. At the same time, the market data provides the valuation basis for the automated booking of the financial cash flows in the ERP.
For the evaluation of financial data, Trinity provides a meaningful reporting system, flexible pivot analyses and connection options to business intelligence tools. Links to internet trading and confirmation matching systems, electronic banking solutions and different ERP for the transfer of planning data as well as the generation of instructions for the fully automatic posting of financial cash flows make work immensely easier.
What our customers say about us
How do corporate treasurers benefit from Trinity's solutions?
In addition to securing solvency as the main objective of liquidity planning, Trinity's solutions offer many more benefits:
- More certainty in financial decision-making through greater transparency
- Improved information basis through global application use via internet
- Possible reduction, yield increase and risk reduction through early indication
- Saving time for important tasks through digitalisation and automation
- Straight Through Processing from Planning to Financial Accounting
- Suitable, scalable system configuration through modular design
- Audit security through dual control principle, tested formulas and audit trails
With which services does Trinity support its customers?
As an owner-managed company, Trinity Management Systems GmbH has been successfully developing treasury management systems for over 25 years. As one of the few German providers, Trinity is self-financed and not dependent on outside capital. This results in many advantages for customers, e.g.
- Personal service and independent development
- European know-how for multinational clients
- Solution-oriented support and individual system integration
- Data security in the German private cloud
- Future-proofing through ongoing further development
Personal service and independent development
What sets Trinity apart from the competition is its personal service and the financial independence that enables it to act in a self-determined and thus customer- and solution-oriented manner. The company, which is based in Frankfurt am Main, develops the software itself and can always tailor its offer to the wishes of its customers. The experienced team has gained a lot of knowhow and learned best-practice approaches, which it is happy to share with its customers.
more information about our personal service
European know-how for multinational clients
Development takes place in Germany and is primarily geared towards European, but also international requirements. Customers with headquarters in Europe benefit from this prioritisation and are happy to trust Trinity's expertise and targeted support. The clientele includes companies from trade, services and industry with turnover sizes ranging from EUR 80 million to over EUR 200 billion p.a.. The sales and project office in the Netherlands has been successfully supporting the German head office in international sales and demanding implementations for years.
Topic-related testimonials and case studies from our satisfied customers can be found in numerous places on our website
Solution-oriented support and individual system integration
Trinity's experienced specialists understand the needs of our customers and provide support starting with the compilation of the optimal module configuration and integration into existing system landscapes. They provide training and valuable tips, assist with the import of master data and ensure an efficient implementation process. For seamless integration, Trinity offers a variety of standardised connection options in different forms, e.g. to financial accounting, electronic banking systems or comprehensive BI tools.
Further information on system integration
The hotline knows the respective configurations of each customer and answers questions quickly and purposefully. Since Trinity offers development, sales and support from a single source, technical experts can be consulted immediately if necessary. The time between enquiry and solution presentation is thus reduced to a minimum.
Further information on our support services
Data security in the German private cloud
Trinity TMS is quick to implement, easy to use and can be accessed worldwide via the internet. The hosting operation is ISAE 3402 (T2) and ISO 27001 certified. Data security complies with EU directives and the German GDPR (DSGVO). High availability, regular backups and updates are among the services Trinity offers its customers. Alternatively, the treasury system can also be installed on the customer's servers (on-premises).
More information about our private cloud hosting
Future-proofing through ongoing further development
Trinity's team is diverse and powerful. In the past, numerous complex customer requests have already been successfully implemented and Trinity was one of the first providers to launch a browser-based version of the Treasury Management System ETMS for global use via the internet back in 2003. The functional breadth and depth of Trinity TMS has been continuously expanded and modern technologies such as REST API connections for digital guarantee management have been deployed.
We are preparing for technology changes in various areas, as the desire for constant innovation drives us.
3500+
Treasury experts trust Trinity
75+
Countries with satisfied Trinity users
150+
Standard Reports & Automation – Processes
25+
Years of experience in treasury management
800 Mrd.+
are managed every day with Trinity
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