The first thought some entrepreneurs have when they review their company’s financial information is: I am making a profit, but have no money in my account!

This is usually because they don't know how to use the accounting statements to manage their business on a day-to-day basis, and there is often a tendency to only use these statements to meet tax obligations.

However, this should not be the way but to use this financial information to support the management of the business and to plan the cash flow. In this way, the manager can assess the ability of the company to generate and use cash to meet its obligations.

1. financial information
The company is required to prepare and present a set of financial statements annually, for this particular topic we will address the following statements:
  1.  Income statement,
  2. Balance sheet, 
  3. Statement of cash flows.


a) The purpose of the income statement is to assess the performance of the company, specifically to determine the profit or loss for the period,

The income statement consists mainly of two categories of elements: the Income and the Expenses of the enterprise, which make it possible to determine the net profit or loss for the period.

Net profit for the period = Income - Expenses
If the net profit for the period is positive, it means that the company has PROFIT. This profit can be interesting from an economic point of view, but it can also mean that it has no financial availability.

The purpose of the balance sheet is to show the financial position of the resources used, how they were financed and whether the company can meet its obligations.

This statement includes three categories of elements:

  • assets (resources used),
  • assets (resources used), liabilities and equity (what are the sources of funding).

[Assets = Liabilities + Equity]

The purpose of the statement of cash flows is to assess the quality of the company's liquidity, which is the ability to generate and use the company's cash. It indicates the cash generated from operating activities, the cash generated from financing activities and the cash used for investing activities.

Thus, cash variation = Cash flow from operating activities + Cash flow from investing activities + Cash flow from financing activities.

For this reason, business owners can find the answer to their questions in this statement: "where did the money come from and where did the money go".

The cash flow statement shows the financial availability to ensure and fulfill the obligations of the company, while the income statement shows us the economic result, profit (or loss). For this reason, we can say that a company can make a profit and not have financial availability.

2. Cash planning

Financial availability can be ensured if there is a cash flow plan that ensures a "financial cushion" for the normal operation of your business.

This plan is not difficult and does not need to be prepared by a professional as businesses know the receivables and payables such as salaries, loans, suppliers, etc.

To help you plan your cash flow, VISEEON has developed a handy tool that can be used by anyone.

To avoid cash flow problems, VISEEON recommends:

  • ensuring you have cash on hand (cash), even with additional funds, to strengthen your "financial cushion'';
  • keeping customers and suppliers satisfied, ensuring a balance between customer service, supplier satisfaction and balancing working capital needs;
  • avoiding non-essential expenses (entertainment expenses, etc.);
  • investing and hiring, only when essential to operations, always considering whether a particular expenditure is an investment or an expense. In the case of major investments, it is of the utmost importance to carry out an economic and financial feasibility study;
  • efficient and careful stock management (so that there is neither surplus nor shortage);
  • converting fixed costs into variable costs, even at the expense of gross margin;

3. Management of financial resources with VISEEON.CASH

To help you manage your company's financial resources, VISEEON has developed a practical tool for all Viseeon clients and non-client entrepreneurs.

This tool allows you to:

  • Access constantly updated information about your company's payments and revenue, without spending hours on spreadsheets;
  • Integrate your software data with VISEEON.CASH application;
  • Automatically anticipate cash flow availability and predict potential shortages,
  •  Forecast the future with peace of mind.

The main benefit of financial planning with VISEEON.CASH application is to ensure the short-term liquidity of your business by answering questions such as: what to pay and what to claim, i.e., being able to "create cash" and respond to possible delays in receipts or payments through an easy-to-use tool, without the limitations caused by traditional spreadsheets.

View the application demo at: VISEEON.CASH


Full free access

*For 30 days.

After the trial period, it costs 10€+VAT per month