17.6. Cash Flow Software
Computer software allows for day-to-day cash management, forecasting and budgeting cash flows, determining cash balances, planning and analyzing cash flows, finding cash shortages, investing cash surpluses, accounting for cash transactions, automating accounts receivable and payable, and dial-up banking.
Computerization improves availability, accuracy, timeliness, and monitoring of cash information at minimal cost. Daily cash information aids in planning how to use cash balances. It enables the integration of different kinds of related cash information, such as collections on customer accounts and cash balances, and the effect of cash payments on cash balances.
Spreadsheet program software such as Lotus® 1-2-3, Microsoft's Excel, and Quattro Pro can assist in developing cash budgets and answering a variety of "what-if" questions. For example, users can see the effect on cash flow from different scenarios (e.g., the purchase and sale of different product lines).
There are computer software packages specially designed for cash budgeting and management.
For example, Up Your Cash Flow XT (www.upyourcashflow.com/) creates financial forecasts for small to midsize businesses quickly and easily. Accountants and consultants use this powerful software to provide ...
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