Cash management
Integrated cash management optimizes finances through oversight, forecasting, reporting, and seamless data flow.
Master Cash Management with Dynamics 365 BC
In business, cash is the lifeblood. Effective cash management is not just about knowing your bank balance – it’s about strategically planning, controlling, and optimizing your cash flow to ensure your business has the liquidity it needs to thrive, grow, and weather any financial challenges. Poor cash management can stifle growth, lead to missed opportunities, and even threaten business survival.
Effective Multi-Site Management and robust Fixed Asset Management are essential for:
Ensuring Liquidity
Having sufficient cash on hand to meet short-term obligations like payroll, supplier payments, and operating expenses.
Strategic Investment
Identifying surplus cash for strategic investments, expansion, and taking advantage of growth opportunities.
Improved Financial Forecasting
Predicting future cash inflows and outflows for proactive financial planning.
Stronger Supplier & Customer Relationships
Paying suppliers on time and offering flexible payment options to customers.
Reduced Financial Risk
Minimizing the risk of cash shortages and financial instability.
Key Benefits of Multi-Site Capabilities in D365 BC
Dynamics 365 Business Central provides a powerful suite of tools specifically designed to streamline and enhance your cash management processes, giving you greater control and visibility over your financial resources:
Real-Time Cash Flow Visibility
Stop guessing about your cash position! D365 BC provides up-to-the-minute visibility into your cash balances across all bank accounts and business activities. Dashboards and real-time data give you an instant snapshot of your current cash situation.
Benefit
Always know your cash position, make informed decisions based on current data, avoid cash surprises.
Automated Bank Reconciliation
Manual bank reconciliation is time-consuming and prone to errors. D365 BC automates the bank reconciliation process by importing bank statements and automatically matching transactions. This saves hours of manual work, reduces reconciliation errors, and ensures accurate cash balance reporting.
Benefit
Faster and more accurate bank reconciliation, reduced manual effort, improved financial accuracy.
Cash Flow Forecasting
Predicting your future cash flow is crucial for planning. D365 BC offers robust cash flow forecasting tools that allow you to project future cash inflows (from sales, receivables) and outflows (expenses, payables). This helps you anticipate potential cash shortages or surpluses and plan accordingly.
Benefit
Proactive cash flow planning, early warning of potential cash gaps, informed financial strategy.
Efficient Payment Processing
Streamline your payment processes to vendors and customers. D365 BC allows you to manage vendor payments, automate payment proposals, and process customer payments efficiently, including electronic payments.
Benefit
Faster and more organized payment processing, improved vendor and customer relationships, reduced payment delays.
Liquidity Management & Analysis
D365 BC provides tools to analyze your liquidity position and identify areas for improvement. You can track key liquidity ratios, analyze cash conversion cycles, and identify opportunities to optimize working capital and free up cash.
Benefit
Improved liquidity analysis, identification of working capital optimization opportunities, enhanced financial health.
D365 BC Tools Empowering Your Cash Management Strategy
Dynamics 365 Business Central equips you with a range of integrated modules and features specifically designed for effective cash management:
Bank Account Management
Manage all your bank accounts within D365 BC, track balances in real-time, and streamline bank transactions. Centralize your bank information for easy access and control.
Benefit
Centralized bank account management, clear overview of all cash holdings.
Cash Flow Forecast Module
Create and manage cash flow forecasts based on sales forecasts, purchase plans, expense budgets, and payment schedules. Visualize projected cash inflows and outflows to anticipate future cash positions.
Benefit
Proactive cash flow forecasting, informed financial planning, scenario analysis.
Bank Reconciliation Functionality
Automate and simplify bank reconciliation processes. Import bank statements, automatically match transactions, and quickly identify and resolve discrepancies.
Benefit
Automated bank reconciliation, reduced errors, faster month-end closing.
Payment Journals & Payment Management
Streamline vendor payments and manage customer receipts. Utilize payment journals for efficient batch payments, automate payment proposals, and support various payment methods.
Benefit
Efficient and organized payment processing, improved payment workflows.
Finance Dashboards & Reporting
Access pre-built dashboards and reports that provide key cash management insights, including cash balances, cash flow forecasts, liquidity ratios, and payment performance. Customize reports for specific cash management analysis needs.
Benefit
Data-driven cash management insights, clear visualization of cash flow performance, enhanced reporting capabilities.
Proactive Cash Management for a Growing Retail Business with D365 BC
Imagine a retail chain with multiple stores experiencing rapid growth. Managing cash flow effectively across all locations becomes a significant challenge. Here’s how D365 BC helps them master their cash management:
Centralized Bank Accounts in D365 BC
They connect all their store bank accounts and their central corporate account to D365 BC. This provides a single, real-time view of their total cash position across the entire retail operation.
Automated Daily Bank Reconciliation
Each day, bank statements are automatically imported into D365 BC and reconciled against transactions. This ensures accurate daily cash balances and quickly identifies any discrepancies needing investigation, replacing a previously time-consuming manual process.
Cash Flow Forecasting for Expansion Planning
As they plan to open new stores, they use D365 BC’s cash flow forecasting module to project the cash impact of expansion. They factor in new store setup costs, inventory purchases, and projected sales revenue to assess the cash requirements and ensure they have sufficient funds for growth.
Optimized Payment Schedules
D365 BC helps them optimize payment schedules to vendors. By analyzing cash flow forecasts and vendor terms, they can strategically schedule payments to maximize cash on hand while maintaining good vendor relationships and taking advantage of early payment discounts.
Proactive Liquidity Monitoring
Using D365 BC dashboards, the finance team constantly monitors key liquidity metrics like the cash conversion cycle and current ratio. Alerts are set up to notify them if liquidity ratios dip below pre-defined thresholds, triggering proactive investigation and corrective actions.
Through D365 BC, this retail business transforms from reactive cash management to a proactive, data-driven approach, ensuring they have the cash flow visibility and control needed to fuel their continued growth.
Take control of your cash flow and build a stronger financial foundation. Schedule a free Cash Management consultation with our D365 BC experts. We’ll discuss your specific cash flow challenges and demonstrate how D365 BC can empower you to optimize your cash, drive financial stability, and fuel business growth.