{"id":69170,"date":"2026-05-20T10:30:00","date_gmt":"2026-05-20T08:30:00","guid":{"rendered":"https:\/\/www.centralpay.com\/?p=69170"},"modified":"2026-06-03T11:11:57","modified_gmt":"2026-06-03T09:11:57","slug":"cash-flow-management-a-performance-indicator","status":"publish","type":"post","link":"https:\/\/www.centralpay.com\/en\/blog\/cash-flow-management-a-performance-indicator\/","title":{"rendered":"Cash flow management: a performance indicator"},"content":{"rendered":"\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">What is cash flow management?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash flow management refers to the management of a company&#8217;s cash flows, that is, all incoming and outgoing cash. It allows for the control of liquidity availability and ensures daily financial stability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Two types of cash flows are distinguished: inflows (cash in), related to customer payments, and outflows (cash out), related to expenses such as suppliers, salaries, or investments. The objective is to maintain a balance between these flows.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On a daily basis, cash flow management makes it possible to anticipate cash flow needs, avoid financial strain and make more informed decisions to manage the business.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">The main types of cash flow you need to know<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To effectively manage cash flow, it is essential to monitor several types of cash flow, each providing a different view of financial performance.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">Operational cash flow (OCF)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Operating cash flow measures the cash flows generated by day-to-day operations. It indicates whether the company generates sufficient liquidity through its operations.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">OCF calculation method:<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Self-financing capacity \u2013 change in working capital<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">Investment Cash Flow (ICF)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It reflects the cash flows related to investments, such as the purchase of equipment or development. It allows us to assess the impact of these expenses on cash flow.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Method for calculating the ICF:<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Disposals of fixed assets \u2013 acquisitions<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">Financing Cash Flow (FCF)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It relates to cash flows linked to financing, such as loans or debt repayments. It allows you to track the company&#8217;s financial structure.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">FCF calculation method:<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Products \u2013 expenses related to equity and debt<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">How to optimize your cash flow management?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Improving cash flow management requires careful management of financial flows and good forecasting.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Optimizing cash receipts:<\/strong> reducing payment delays and implementing automatic reminders helps accelerate cash inflows and limit unpaid invoices.<\/li>\n\n\n\n<li><strong>Controlling disbursements:<\/strong> negotiating supplier deadlines and smoothing out expenses over time helps to avoid cash flow pressures and to better distribute cash outflows.<\/li>\n\n\n\n<li><strong>Implementing a forecasting strategy:<\/strong> analyzing past cash flows allows you to anticipate future needs, identify periods of risk and adapt your financial management accordingly.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">What are the best practices for managing cash flow?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Effectively managing your cash flow relies on simple and regular actions.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regularly monitor your indicators:<\/strong> analyzing cash flows allows you to quickly identify discrepancies and act without delay.<\/li>\n\n\n\n<li><strong>Implementing forecasting scenarios:<\/strong> anticipating several situations (growth, decline in activity) helps to secure cash flow.<\/li>\n\n\n\n<li><strong>Automating financial processes:<\/strong> automating cash receipts and payment tracking improves reliability and saves time.<\/li>\n\n\n\n<li><strong>Continuously adapting your strategy:<\/strong> adjusting your decisions based on data allows you to better manage risks and support growth.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">The role of technology in cash flow management<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Technology plays a key role in optimizing cash flow management by providing better visibility and more precise control of financial flows.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cash management tools: they allow you to track cash inflows and outflows, analyze flows and anticipate liquidity needs.<\/li>\n\n\n\n<li><strong>ERP and management software:<\/strong> they centralize financial data and facilitate the overall management of the business, by linking accounting, invoicing and cash flow.<\/li>\n\n\n\n<li><strong>Payment solutions and automation:<\/strong> they accelerate cash receipts, automate reminders and simplify accounting reconciliation.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Access to up-to-date data allows for quick decision-making and continuous adjustment of financial strategy.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">How should the cash flow result be interpreted?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The cash flow result requires interpretation to determine the financial health of your business.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">Positive cash flow<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Positive cash flow means that the company receives more money than it spends over a given period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It reflects a healthy financial situation and shows that the company can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pay your operating expenses,<\/li>\n\n\n\n<li>To finance its development projects,<\/li>\n\n\n\n<li>Absorbing unforeseen events,<\/li>\n\n\n\n<li>Pay off your debts.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This capacity gives it real room to grow without relying on external financing.<br><br>Positive cash flow also reassures investors and creditors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Good to know:<\/strong> excessively high cash flow can also indicate that the company is not investing enough in its growth.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">Negative cash flow<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A negative cash flow means that the company spends more money than it generates over a given period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may reveal:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Poor cash management,<\/li>\n\n\n\n<li>A strong dependence on external funding,<\/li>\n\n\n\n<li>Excessive investments.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Over time, negative cash flow weakens the viability of the company.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">How to improve your company&#8217;s cash flow management?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Several levers can be activated to improve cash flow and strengthen cash flow management:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Optimize debt collection with automated payment incentives,<\/li>\n\n\n\n<li>Negotiate longer payment terms with suppliers,<\/li>\n\n\n\n<li>Reduce costs by eliminating non-essential expenses or renegotiating certain contracts,<\/li>\n\n\n\n<li>Adjust prices to increase revenue,<\/li>\n\n\n\n<li>Develop new offerings to diversify revenue<\/li>\n\n\n\n<li>Seek external funding if necessary<\/li>\n\n\n\n<li>Regarding management tools, <a href=\"https:\/\/www.centralpay.com\/en\/blog\/online-payment-which-methods-to-choose\/\">online payment<\/a> or automated invoicing.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\">Optimize your invoice collection with CentralPay<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Strained cash flow management is often a symptom of poorly managed invoice collection: late reminders, unidentified transfers, and time-consuming bank reconciliations. CentralPay allows B2B companies to automate this entire cycle to reduce payment delays and lighten the operational workload of their teams.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The platform supports four key functions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>We accept all payment methods:<\/strong> credit card, <a href=\"https:\/\/www.centralpay.com\/en\/solutions\/payments\/apple-pay-and-wallets\/\">Apple Pay<\/a>, Google Pay, instant bank transfer, and SEPA direct debit. Offering your customers their preferred payment methods directly reduces friction and speeds up payments.<\/li>\n\n\n\n<li><strong>Streamlining customer relations:<\/strong> automatic notifications, scheduled reminders at the right time, and an online customer portal available 24\/7 to view invoices and make payments independently.<\/li>\n\n\n\n<li><strong>Automation of processing:<\/strong> customized bank reconciliation rules, dedicated virtual IBANs per client to instantly identify the sender of each transfer, management of overpayments and automated refunds to third parties.<\/li>\n\n\n\n<li><strong>ERP connectivity:<\/strong> automatic import of invoices via <a href=\"https:\/\/www.progress.com\/fr\/ressources\/livres-blancs\/serveur-sftp\" target=\"_blank\" rel=\"noopener\">SFTP<\/a> or through the CentralPay portal, with return of payment data in the format supported by your information system, without manual re-entry.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Do you want to reduce your payment delays and improve your cash flow management?<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.centralpay.com\/en\/use-cases\/invoice-collection\/\">Discover the CentralPay invoice collection solution \u2192<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"BlogPosting\",\n  \"name\": \"Cash flow management: definition and strategic indicator\",\n  \"headline\": \"Cash flow management: a performance indicator\",\n  \"datePublished\": \"May 20, 2026\",\n  \"dateModified\": \"May 20, 2026\",\n  \"description\": \"Discover cash flow management and how to optimize it to improve your company's cash flow and financial performance.\",\n  \"image\": {\n  \"@type\": \"ImageObject\",\n  \"height\": \"600\",\n  \"width\": \"1000\",\n  \"url\": \"https:\/\/www.centralpay.com\/wp-content\/uploads\/2026\/05\/cash-flow-management-indicateur.jpg\"\n  },\n  \"author\": {\n  \"@type\": \"Person\",\n  \"name\": \"CentralPay\"\n  },\n  \"publisher\": {\n  \"@type\": \"Organization\",\n  \"name\": \"CentralPay\",\n  \"logo\": {\n  \"@type\": \"imageObject\",\n  \"url\": \"https:\/\/www.centralpay.com\/assets\/images\/logo.png\"\n  }\n  },\n  \"mainEntityOfPage\": true,\n  \"url\": \"https:\/\/www.centralpay.com\/en\/blog\/cash-flow-management-a-performance-indicator\/\"\n}\n<\/script>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cash flow management plays a central role in a company&#8217;s financial performance. It&#8217;s not just about generating revenue or being profitable on paper, but about having sufficient liquidity to cover expenses and ensure business continuity.<\/p>\n<p>Profitability measures earnings, while liquidity reflects the ability to meet expenses. A company can be profitable while still experiencing cash flow difficulties.<\/p>\n<p>Effectively managing cash flow is therefore a strategic imperative for securing business operations, anticipating needs, and supporting growth.<\/p>\n","protected":false},"author":1,"featured_media":69164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"theme-darticle":[],"class_list":["post-69170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-services-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/posts\/69170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/comments?post=69170"}],"version-history":[{"count":0,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/posts\/69170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/media\/69164"}],"wp:attachment":[{"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/media?parent=69170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/categories?post=69170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/tags?post=69170"},{"taxonomy":"theme-darticle","embeddable":true,"href":"https:\/\/www.centralpay.com\/en\/wp-json\/wp\/v2\/theme-darticle?post=69170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}