DYNAMIC METHODS OF LIQUIDITY CONTROL AND PLANNING

However, it appears important, in family business as well, to plan financially in order to adequately manage sharply rising expenses and receive corresponding results. The model's forms, patterned after bookkeeping accounts, are filled out with the predicted monthly returns and expenses for the next year. Also to be taken into account are monthly flow in the private sector, investments and loan interest rates.

Though the usual situation in horticulture is one of constant expenses vis-a-vis seasonal returns, better reimbursements can be aimed at through minimization and deferment of expenses. The actual monthly figures are then compared with the projected figures.

Using data from an actual ornamental plant business, an instructive practice model is introduced. Manual calculation isn't necessary, planning can also be done by computer.

This model is programmed in Basic. Thus, alternative suppositions can be quickly computed and their effects examined.

The observation of the sample business over several years shows, nevertheless, that projected and actual figures can not be brought into agreement, particularly when large investments are planned and expenditures rise faster than returns. As far as that is concerned, the actual objective is more one of setting aims. Also, since a fixed record is established, a constant steering towards the maintenance of a stable liquidity is possible.

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