Cash Management & liquidity management
at a glance
Initial Situation
In tense situations, solvency and transparency must be guaranteed on a daily basis.
Our Approach
We prepare daily liquidity statements and short-term forecasts, manage working capital, and assess insolvency readiness in accordance with IDW S11.
Your Benefit
- Immediate transparency regarding cash situation
- Reduced capital commitment & liquidity gains
- Legally compliant decisions by executive bodies
in Detail
Initial Situation
Cash management and liquidity control are crucial when liquidity is tight, solvency must be ensured on a daily basis, or stakeholders demand transparency at short notice. Typical scenarios include restructuring, declines in operating earnings, or highly volatile cash flows. Without robust control, there is a risk of loss of action and increasing financing pressure.
What is Cash Management and Liquidity Control?
Cash management comprises three core elements: a daily group-wide liquidity status, a rolling short-term liquidity forecast, and active working capital management. In addition, reasons for insolvency are assessed in a structured manner. Clear responsibilities and approvals ensure that payments are prioritized and measures are implemented consistently.
Objective, Significance, and Purpose of Cash Management and Liquidity Control
The aim is to ensure solvency at all times and release liquidity. Early forecasts reveal bottlenecks, while working capital leverage reduces capital commitment and creates financial leeway. At the same time, assessing the insolvency situation in accordance with IDW S11 helps the executive bodies make legally compliant decisions and stabilizes creditor confidence.
Support from Horn & Company
Horn & Company establishes a tried-and-tested cash management system – from daily status reports and 13-week forecasts to working capital programs. We define payment governance, identify short-term liquidity levers, and deliver a clear cash story that stakeholders can understand. This gives you transparency, room for maneuver, and speed in your turnaround.
