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WEGRAZ SOCIETY OF CITY ASSOCIATION AND ASSANTS M.B.H.

KEEP THE CASH FLOW ALWAYS UNDER CONTROL

KEY DATA

Sector: Project development in the real estate sector

Employees: 14

Headquarter: Graz

Turnover: 10 Mio.

The implementation of short-term liquidity management has significantly improved our liquidity management.

CHALLENGE

WEGRAZ has been successfully involved in real estate project development since 1974 and now consists of 19 companies. In addition to revitalization projects, the range of services also includes new buildings in the residential, retail, commercial and industrial sectors. The peculiarity or difficulty in the planning of real estate projects lies in their heterogeneity: each real estate project is completely individual, a business intelligence solution must therefore support individual and project-oriented planning. Another key requirement is the realization of medium-term financial planning and short-term liquidity management. At the push of a button, you should be able to find the most up-to-date means of payment.

RESULTS

The individual project planning is supported by the central module - the project budgeting. In this specific planning module, the different project cost types per project are planned by the project managers at quarterly level. In doing so, the revenues specific to the company (rental and operating costs, etc.) and expenses (operating expenses, maintenance expenses, etc.) are planned. All other cost elements planned in separate modules, such as investments and interest, flow into this central planning screen.

At the moment when the project managers plan their respective projects, they receive the calculatory result and the cash flow at the push of a button at project level. These are also centralized in integrated financial and balance sheet planning. From the budgeted cash result, we receive the liquidity plan on a weekly basis and can thus promptly determine how much cash we have available for day-to-day operations.

Mag. Christian Raber, Head of Accounting and Controlling

HIGHLIGHT

Weekly liquidity planning is based on current account balances and is done separately for each company ten weeks in advance. The starting point is any reference plan (budget, forecast, etc.) from which the data is transferred as default values and distributed according to the predefined criteria (specific day of the month, equal distribution, etc.) for the individual weeks. The user always has the option of overwriting these default values in order to be able to respond promptly to cash-relevant changes. As a result, the person responsible receives the liquidity requirement or surplus, on the basis of which liquidity is controlled.