Cash flow is the lifeblood for any business, regardless of size or sector. A well-managed cash flow makes it possible not only to meet daily expenses, but also to plan investments calmly, to honor commitments and to withstand the unexpected. To do this, it is essential to follow the right indicators.

In this article, learn about the main cash flow indicators to watch, how to analyze them, and how modern tools like Bill Up Can help you make your flows more reliable and gain visibility.

Why monitor cash flow indicators?

Anticipating Financing Needs

A business can be profitable, but in difficulty if it does not have sufficient liquidity to meet its expenses. The indicators make it possible to identify a possible imbalance between receipts and disbursements at an early stage.

Optimize decision making

Having a clear vision of your cash flow helps you know when to invest, recruit, or, on the contrary, reduce certain expenses. Good management requires decisions based on reliable data.

Reassure your partners

A company that monitors and controls its financial flows inspires confidence in its banks, investors, suppliers and customers.

Key indicators for effective cash management

1. The cash balance

This is the basic indicator: it represents the money that is actually available in your bank accounts at a given moment.

Why is it crucial?

Because it reflects the immediate ability of the company to meet its obligations. It must be monitored on a daily basis, especially in fast-growing or just-in-time structures.

2. The cash flow plan

It is a forecasting table that lists all cash flows and disbursements over a given period (often monthly or weekly).

What it allows you to:

• To visualize future cash peaks or troughs,
• To anticipate financing needs,
• To plan future payments without risking overdraft.

💡 Tip: Tools like Bill Up Facilitate this planning thanks to a better Automated Invoice Management. As soon as an invoice is scanned or imported into the application, it is registered, classified, and the deadline is known. This allows for more accurate forecasting of cash outflows.

3. The need for working capital (BFR)

The working capital measures the amount necessary to finance the operating cycle, i.e. the difference between your receipts (customers) and your disbursements (suppliers, expenses, stocks).

Formula: BFR = Inventory + Receivables - Accounts Receivable

A high BFR = alert!

It may indicate that your cash has been mobilized for too long in accounts receivable or inventory. Monitoring this indicator is essential to optimize deadlines and free up cash.

4. The average customer payment term (DSO)

The DSO (Days Sales Outstanding) shows how many days it takes for your customers on average to pay you.

Formula: (Customer Receivables/Turnover including VAT) x 365

Why is it important?

A high DSO means your customers are paying you slowly, which is taking a toll on your cash flow.

👉 Practical solution: Thanks to Bill Up, your customers can Scan Their Bills And Perform a Fast payment via their bank, without friction. This naturally reduces settlement times and improves your DSO.

5. The average supplier payment period

Unlike the DSO, this time frame measures the time you take to pay your suppliers.

What to aim for:

A good balance: reasonably delay payments to preserve your cash flow, without deteriorating the supplier relationship.

Here Too, Bill Up Allows You To Choose the date of payment Of an invoice, with a simple scan. You manage your cash outflows according to your free flows, without unintended delays.

6. Self-financing capacity (CAF)

CAF measures the internal resources generated by the company's activity. It indicates your ability to finance your investments without having to borrow.

A positive and growing CFA is an excellent signal for your financial strength and your ability to maintain a healthy cash flow.

Tools and best practices for effective management

Centralize and Automate Flows

Mistakes and oversights in tracking payments can be expensive. A tool like Bill Up data entry automatons thanks to:

• La Intelligent digitization of invoices (scan or import),
• The Simplified payment through your bank,
• The Automatic Filing by supplier, date or project.

This reduces manual tasks, secures your data, and gives you better real-time visibility on your deadlines.

Update your forecasts regularly

An effective cash flow plan is not fixed: it must be adjusted every week or month according to your actual cash inflows and expenses. Use your indicators to review your forecasts.

Raise awareness among teams

Cash flow does not only concern the accounting department: sales, purchasing, project management... Everyone can have a positive impact on financial flows if they are well informed of the challenges.

Use case: Bill up in the service of financial management

Imagine: you receive a supplier invoice. Thanks to Bill up, you scan or import it directly from your email. The application automatically extracts the key data (amount, due date, beneficiary), offers you to schedule the payment on the desired date, then classifies the invoice in your history.

Result:

• You avoid late payments,
• You know exactly when the disbursement will take place,
• You maintain a clear and structured vision of your future commitments.

It is A concrete solution to increase reliability and anticipate your cash flow, while saving time.

In summary

To effectively manage your cash flow, focus on the following indicators:

• Daily cash balance,
• Provisional cash flow plan,
• BFR and payment terms (DSO and suppliers),
• Self-financing capacity.

But beyond the numbers, it's your ability to Automate, Anticipate and Organize The financial flows that will make the difference. With tools like Bill Up, you centralize your invoices, simplify your payments, and structure your cash outflows.

Intelligent cash flow management is a decisive step towards a healthier, more agile and more efficient company.

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