Inflation touched 10% in March, according to the latest CPI data from the INE. Marked by the rise in electricity, fuels and fuels, among others, this lack of control of prices is seriously affecting Spanish companies.
A recent survey by the Bank of Spain shows that eight out of ten companies expect inflationary pressures to remain at similar levels in the second quarter of the year, for which they foresee additional increases in the cost of their inputs.
“This sudden change, together with other tensions such as geopolitical conflicts, ultimately cause companies to pass on part of the price increase to consumers, which reduces their margins and jeopardizes their results and their liquidity”, highlights Rocío López Almodóvar, Territory Manager of Agicap Spain.
Manage liquidity
From the company’s point of view, prevention scenarios -realistic, pessimistic or optimistic- is the best ally to analyze contingencies and avoid liquidity problems.
Through a modern software platform based on analytics and Artificial Intelligence, companies can obtain a more accurate display of the status of accounts, in addition to simulating the evolution of changing scenarios such as the rise in prices.
“More than 5,000 of our clients are already benefiting from the forecasting capabilities of treasury management software, which provides short, medium and long-term forecasts to gain visibility into the right cash flow and prepare for the unexpected”continues the head of the firm.
Real time visibility
Have a ‘photo’ in real time on available cash and a forecast of the financial situation is thus the key element of the treasury automation systems, which allow to reliably show the entry and exit of money from the company and correctly prevent unforeseen events and other expected items such as the payment of bills and taxes .
Effective collaboration is another advantage. With just a few clicks, the software allows you to share clear and reliable cash forecast reports with partners, banks or auditors to facilitate obtaining loans or financing investments.
“Inflation, which already began to pick up in the fourth quarter of last year, will mark the trend of the Spanish economy in the coming months, so we recommend companies prevent possible scenarios so as not to have liquidity problems”, cLópez Almodóvar concludes.
