Liquidity Risk Forecast

What is a Liquidity Risk Analysis Forecast Report? Liquidity Risk Analysis reports are considered financial management tools that are used by financial managers to monitor and project the company's liquidity. A key functionality in this type of report allows the user to score the risk based on a weighted average of various drivers that comprise the overall liquidity risk number as seen in the image below. The user can find more details by expanding the section below the risk rating. In this section, components, such as cash, receivables, EBITDA, payables, debt, and etc. can be viewed. The report pulls these figures from the underlying Cash Flow forecast, which ties to the Profit & Loss and Balance Sheet forecast. You will find an example of this type of report below.

Purpose of Liquidity Analysis Reports Companies and organizations use Liquidity Analysis Reports to analyze historical and forecasted periods to better manage liquidity. It can also identify unforeseen, as well as, planned business activities that require cash or financing. When used as part of good business practices in a Finance & Accounting Department, a company can improve its liquidity-related decisions as well as reduce the risk that it runs out of money.

Who Uses This Type of Report? The typical users of this type of report are: The Board of Directors, CEOs, CFOs, Treasurers and Analysts. Other Reports Often Used in Conjunction with Liquidity Analysis Reports Progressive Finance & Accounting Departments sometimes use several different Liquidity Analysis Reports, along with forecasts and reports for profit & loss, balance sheet, cash flow, receivables aging analysis and other management and control tools.

Where Does the Data for Analysis Originate From? The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others. In analyses where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional xFP&A solutions.

This Solver planning template connects directly to your ERP data via the Solver Data Warehouse, enabling near real-time analysis with minimal setup. Designed for QuickStart deployment, it can be activated rapidly so your team can focus on analysis and decisions — not data preparation.

What is the Liquidity Risk Forecast in Solver? The Liquidity Risk Forecast is a pre-built xFP&A planning template in Solver that allows finance and business teams to submit planning data directly in Solver, with automatic roll-up to consolidated budget and forecast models.

Who uses this Solver planning template? Cfos, fp&a managers, and budget owners rely on this Solver planning template to streamline the budget and forecast submission process. It replaces disconnected spreadsheets with a single, controlled input point that feeds directly into consolidated models.

Where does the data come from? Data is sourced automatically from your ERP system through the Solver Data Warehouse, which integrates with platforms such as Microsoft Dynamics 365 Business Central, Dynamics 365 Finance, Acumatica, Sage Intacct, and other leading ERP solutions. Once connected, the template updates in near real-time with no manual data entry required.

To learn more, visit the Resource Library.