Company’s cash flow

A cash flow statement helps you understand your company’s running costs and prepare for upcoming costs.

Monitor your company’s cash flow

A cash flow statement helps you understand your company’s running costs and prepare for upcoming costs.

The sufficiency of funds and the ability to make payments (liquidity) is a fundamental question in a company’s financial management. For this reason, entrepreneurs should regularly monitor their company’s cash flow.

The company must have sufficient funds for the actual running of the business, for credit and loan repayments and for future investments. A common reason for problems is the inability to forecast the company’s cash flow and to take proactive measures based on those forecasts.

A cash flow statement is an excellent tool for maintaining the company’s liquidity, or its ability to make payments. It helps you understand your company’s running costs and prepare for upcoming costs.

Is the income sufficient to cover expenses?

Cash flow statement measures the sufficiency of funds on a monthly basis. The entrepreneur should estimate the company’s sales-based internal financing and expenses as realistically as possible. The company will incur running costs right from the beginning of operations, whereas initial sales are not always as high as the entrepreneur had hoped.

The cash flow statement is an estimate of the following:

  • Sales and other income
  • Running costs, such as labour costs, insurance premiums and costs for facilities
  • Financial income, such as loans
  • Costs of financing (if any)

The importance of cash flow monitoring is emphasised in many stages of a company’s life cycle. 

The cash flow statement helps the entrepreneur to understand when additional financing is needed. Even profitable companies may sometimes run short of cash. For example, business growth requires capital, which is then unavailable for other purposes. Similarly, a seasonal business generates income during a specific time of the year, whereas fixed costs are incurred more evenly throughout the year. 

A cash flow statement is an important tool for a company that needs more working capital. The role of cash flow is particularly emphasised if the company makes larger investments or has a lot of accounts receivable or wages and salaries to pay. 

Efficient tools for monitoring payments and cash flow

We provide companies with modern and flexible cash management services that help them in managing their finances.

With the op.fi service for corporate customers, you stay informed about your company’s finances in real time. In this service, you can do your company's or entity's banking transactions securely and conveniently. You will also get OP Business mobile, which is a banking app for entrepreneurs. 

Read more about corporate online and mobile services >

OP Corporate Hub is a digital financial management service that provides you with an overview of your company’s cash flows and financial monitoring. The service enables you to manage your company’s payments, monitor accounts and transactions as well as get an overview of your company’s finances. 

Read more about OP Corporate Hub >

With our API solutions, or software interfaces, you can enhance your company’s operations and easily build a real-time connection from your company’s systems to your bank. The interfaces can be used to fully automate both payment transfers and transaction queries, thereby speeding up your company’s processes related to payments and monitoring of accounts receivable. 

Read more about our API solutions >

With the banking connection channel for businesses (Web Services) , you can build a connection from your company’s software to your bank’s services. Through the channel, you can send and receive your company's payment transaction data between the bank’s and your own software. 

Read more about the banking connection channel for businesses >

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