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Cash Flow Management ​

Effective cash flow management ensures your business maintains adequate liquidity for operations while optimizing working capital. This guide covers comprehensive cash flow tools in Angage ERP.

Understanding Cash Flow ​

Cash Flow Components ​

Operating Activities ​

  • Customer collections
  • Vendor payments
  • Payroll disbursements
  • Operating expenses
  • Tax payments

Investing Activities ​

  • Asset purchases
  • Asset sales
  • Investment income
  • Capital projects

Financing Activities ​

  • Loan proceeds
  • Loan payments
  • Dividend payments
  • Capital contributions

Cash Position Monitoring ​

Real-Time Cash Position ​

View current liquidity:

  1. Navigate to Finance → Cash Management
  2. Dashboard displays:
    • Bank balances
    • Available credit
    • Today's movements
    • Pending transactions
    • Net position

Bank Account Overview ​

For each account see:

  • Current balance
  • Available balance
  • Holds/reserves
  • Recent activity
  • Forecast balance

How-To Guides ​

How to Create Cash Flow Forecasts ​

Setting Up Forecast Model ​

  1. Go to Cash Flow → Forecasts
  2. Click New Forecast
  3. Configure parameters:
    • Period: Next 13 weeks
    • Frequency: Weekly
    • Scenario: Base case
    • Include: All sources

Data Sources ​

System pulls from:

  • Accounts Receivable
    • Open invoices
    • Payment terms
    • Collection history
  • Accounts Payable
    • Outstanding bills
    • Payment schedules
    • Discount opportunities
  • Recurring Items
    • Payroll
    • Rent
    • Loan payments
    • Subscriptions

Manual Adjustments ​

Add known items:

  • Expected sales
  • Large purchases
  • One-time payments
  • Seasonal factors
  • Growth assumptions

How to Analyze Cash Flow Patterns ​

Historical Analysis ​

  1. Run Cash Flow History
  2. Select period (e.g., last 12 months)
  3. View patterns:
    • Weekly cycles
    • Monthly trends
    • Seasonal variations
    • Growth rates

Key Metrics ​

Monitor critical indicators:

  • Days Sales Outstanding (DSO)
  • Days Payable Outstanding (DPO)
  • Cash Conversion Cycle
  • Operating Cash Flow Ratio
  • Free Cash Flow

How to Manage Working Capital ​

Receivables Optimization ​

Collection Strategies

  1. Review aging report
  2. Prioritize collections:
    • Large overdue balances
    • High-risk accounts
    • Approaching due dates
  3. Actions:
    • Send reminders
    • Make calls
    • Offer discounts
    • Payment plans

DSO Improvement

  • Invoice immediately
  • Clear payment terms
  • Multiple payment options
  • Follow-up schedule
  • Credit management

Payables Management ​

Payment Optimization

  1. Review payment schedule
  2. Identify opportunities:
    • Early payment discounts
    • Extended terms
    • Payment timing
    • Batch processing
  3. Balance priorities:
    • Maintain relationships
    • Optimize discounts
    • Preserve cash

How to Create Scenario Analysis ​

Multiple Scenarios ​

Build different cases:

Best Case

  • Accelerated collections
  • Increased sales
  • Delayed expenditures
  • Higher margins

Base Case

  • Normal operations
  • Historical patterns
  • Planned activities
  • Expected growth

Worst Case

  • Delayed collections
  • Reduced sales
  • Accelerated payments
  • Unexpected costs

Scenario Comparison ​

View side-by-side:

  • Cash positions
  • Variance analysis
  • Risk indicators
  • Action triggers

How to Set Up Cash Alerts ​

Alert Configuration ​

  1. Go to Settings → Cash Alerts
  2. Create alert rules:
    • Low Balance: Below $50,000
    • Large Payment: Over $100,000
    • Forecast Shortage: Next 7 days
    • Credit Limit: 80% utilized

Notification Methods ​

  • Email alerts
  • SMS messages
  • Dashboard warnings
  • Mobile push
  • Report distribution

How to Optimize Payment Runs ​

Payment Scheduling ​

  1. Navigate to Payment Runs
  2. Set up schedule:
    • Weekly AP runs
    • Payroll dates
    • Tax payments
    • Loan payments

Payment Selection ​

Optimize selections:

Priority 1: Take discounts
Priority 2: Avoid late fees
Priority 3: Key vendors
Priority 4: Normal terms
Priority 5: Extended terms

Execution ​

  1. Generate payment proposals
  2. Review and adjust
  3. Approve payments
  4. Execute transfers
  5. Update forecasts

Advanced Features ​

Cash Pooling ​

Zero-Balance Accounts ​

Automate fund concentration:

  • Subsidiary accounts
  • Sweep to master
  • Daily balancing
  • Interest optimization

Notional Pooling ​

Calculate net position:

  • Multiple accounts
  • Offset balances
  • Interest benefits
  • Maintain autonomy

Investment Management ​

Excess Cash Investment ​

When surplus identified:

  1. Review investment policy
  2. Options:
    • Money market
    • Short-term deposits
    • Commercial paper
    • Treasury bills
  3. Execute investments
  4. Track returns

Investment Tracking ​

  • Portfolio overview
  • Maturity schedule
  • Yield analysis
  • Risk assessment
  • Liquidity planning

Credit Facility Management ​

Credit Line Monitoring ​

Track utilization:

  • Available credit
  • Outstanding draws
  • Interest charges
  • Covenant compliance
  • Renewal dates

Drawdown Planning ​

Optimize borrowing:

  • Forecast needs
  • Time drawings
  • Minimize interest
  • Maintain cushion

Cash Flow Reporting ​

Standard Reports ​

Daily Cash Report ​

  • Opening balance
  • Receipts
  • Disbursements
  • Closing balance
  • Forecast vs actual

Weekly Cash Flow ​

  • 13-week forecast
  • Major inflows/outflows
  • Bank positions
  • Credit availability
  • Key metrics

Monthly Analysis ​

  • Statement of cash flows
  • Variance analysis
  • Trend charts
  • KPI dashboard
  • Executive summary

Custom Analytics ​

Build specific views:

  • By company/division
  • By currency
  • By bank
  • By category
  • By project

Integration Features ​

Bank Connectivity ​

Direct Integration ​

  • Real-time balances
  • Transaction import
  • Payment initiation
  • Statement download
  • Confirmation matching

File Exchange ​

  • BAI2 format
  • MT940 statements
  • ACH files
  • Wire transfers
  • Check images

System Integration ​

Connected modules:

  • AR for collections
  • AP for payments
  • GL for actuals
  • Budget for plans
  • Treasury for investments

Best Practices ​

Forecast Accuracy ​

  • Update daily
  • Include all sources
  • Document assumptions
  • Track accuracy
  • Continuous improvement

Liquidity Management ​

  • Maintain buffers
  • Diversify sources
  • Monitor covenants
  • Plan contingencies
  • Regular reviews

Process Optimization ​

  • Automate collections
  • Streamline payments
  • Accelerate closing
  • Improve visibility
  • Reduce float

Configuration ​

Cash Flow Settings ​

Navigate to Settings → Finance → Cash Flow:

  • Forecast Horizon: 13 weeks
  • Update Frequency: Daily
  • Collection Assumptions: DSO-based
  • Payment Assumptions: Terms-based
  • Safety Buffer: $100,000

Integration Setup ​

  • Bank connections
  • Payment systems
  • Collection tools
  • Investment platforms
  • Reporting tools

Troubleshooting ​

Common Issues ​

Forecast inaccuracy

  • Review assumptions
  • Check data sources
  • Update patterns
  • Include all items
  • Adjust models

Cash shortfalls

  • Accelerate collections
  • Delay payments
  • Use credit lines
  • Liquidate investments
  • Review forecast

Integration problems

  • Verify connections
  • Check file formats
  • Review mappings
  • Update credentials
  • Contact support

Next Steps

Learn about Cost Centers for detailed expense tracking and allocation.

Angage ERP Documentation

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