Liquidity Planning: Practical Starter Tips For A Better Overview

What we hear again and again in conversations with business owners is this: the product is developing well, the team is working smoothly, customers are happy, yet liquidity remains a concern. Not because you are doing anything wrong, but because it is easy to lose sight of it amid daily operations. And then suddenly the question comes up: will the money last until the end of the month, or will the next dip in revenue create real pressure?

If you want to avoid leaving this to chance in 2026, a clear approach to liquidity planning can make all the difference. It gives you confidence and real control over your cash flow. In this article, we show you how to set up a reliable liquidity plan without unnecessary complexity and what developments you should keep in mind for the coming years.

Key Takeaways

• A clear liquidity plan helps you understand early on how your cash flow will develop and where potential gaps may appear.

• The foundation is always real incoming and outgoing payments rather than optimistic revenue estimates.

• We recommend updating your plan regularly and working with scenarios instead of relying on a static once-a-year list.

• Digital tools like Tidely make liquidity planning far more reliable than traditional Excel spreadsheets.

• Rising costs, delayed payments and a generally volatile market make forward looking liquidity planning more important than ever.

What is Liquidity Planning?

Liquidity planning means gaining a clear picture of how much money will actually be available in the future. We often see that business owners know their revenue well, but do not track when this revenue will really reach their account. Many underestimate how big the gap can be between sending an invoice and receiving the payment.

A solid liquidity plan does more than show your current situation. It helps you look ahead. It acts as an early warning system that shows when you have enough funds and when things may become tight. This is especially important for small and medium sized businesses that have fewer financial buffers.

We always recommend looking at liquidity planning as part of a bigger picture. It connects your business model, your revenue structure, your cost development and your overall financial strategy. When these elements come together, the plan shows you clearly and transparently where you stand.

„“We see again and again that the best ideas do not fail because there is no demand. They fail because there is not enough liquidity. A good plan often makes the difference between growth and stagnation.”“ - Miriam Wohlfarth, Founder and Co-CEO of Banxware

Liquidity Planning in 2026: a Success Factor? 

Economic conditions are shifting faster than they used to, and several trends are putting direct pressure on liquidity.

1. Payment terms are getting longer
Many customers pay later than agreed, often because they are dealing with their own cash constraints. For your business, this means the work is completed but the money arrives too late. The gap between effort and incoming cash widens, and this delay puts companies into difficult situations again and again. This is why realistic payment timings are far more important than optimistic expectations.

2. Costs remain high
Energy, staff and materials have become significantly more expensive and will likely stay at this level. Your basic cost structure increases, while prices cannot always be passed on in the same way. This imbalance creates constant pressure on liquidity.

3. Markets are becoming less predictable
Since 2023, demand has become more volatile. One month looks strong, the next slows down sharply. This unpredictability makes planning harder. Without a structured view of your liquidity, reactions often come too late. With a solid plan, you can spot patterns earlier and make more confident decisions about staffing, purchasing or investment.

4. Higher expectations for financial reserves
The past few years have shown how important financial buffers are. Many small and medium sized businesses are now actively trying to build reserves. This is sensible but ties up capital and increases the need for a clear liquidity overview. A reliable plan helps you understand how much reserve is realistic and when external financing may be the better choice instead of using up everything you have saved.

Creating a Liquidity Plan: Step by Step

Many business owners know they need a liquidity plan but are unsure where to begin. In practice, we often see two extremes. Some plan far too loosely and hope things will work out. Others try to build an overly complex spreadsheet that becomes unmanageable from day one.

Neither approach delivers good results. A reliable liquidity plan always follows the same principle: start simple, structure it clearly and update it regularly.

What belongs in a Liquidity Plan?

In short, everything that affects your bank balance. And not in abstract categories, but tied to a specific date when the cash actually moves.

Incoming payments include:

• Revenue from sales or projects
• Recurring payments such as monthly service fees
• Grants or subsidies
• Refunds
• Loan payouts

Outgoing payments include:

• Purchases and cost of goods
• Salaries and wages
• Rent, leasing and insurance
• Taxes and social contributions
• Supplier invoices
• Loan repayments
• One time expenses and investments

How do you turn these Numbers into a real Liquidity Plan? ‍

1. Start with your current balance

This is your starting point. Without a real opening balance, every plan remains theoretical.

2. List all upcoming incoming and outgoing payments

Use actual dates, not just months. That is the only way to spot gaps within a month instead of discovering them afterwards.

Tip: Many small businesses have recurring payments such as salaries, rent or insurance. Enter them once and copy them across the next months.

3. Assign everything to a time period

‍We recommend planning by week and adding a rolling forecast for the next six to twelve months. Why weekly? Because most liquidity issues appear inside the month, not at the end of it.

4. Calculate your liquidity‍

Combine all elements: starting balance + incoming payments – outgoing payments = expected balance.
Do this week by week and month by month.

5. Identify critical periods and define actions

If things get tight, there are three common levers: 

• Shift expenses if possible
  For example with suppliers or planned investments
• Speed up incoming payments
  Through reminders, deposits or upfront payments
• Consider Financing
  to bridge a short-term gap

We always recommend planning at least two scenarios: one realistic and one conservative.

Liquidity Planning: A Practical Example

Imagine you start May 2026 with 18,000 Euros in your account. You expect incoming payments of 24,000 Euros, but your expenses add up to 29,000 Euros. At first glance this looks fine, because the total income is higher. In practice, this is exactly where the risk sits.

Once you break the payments down by date, the picture changes quickly:

• Salary and social contributions on Mai 1st → 12,000 Euros
• Rent, insurance and part of your inventory purchase on Mai 3rd → 7,000 Euros
• Account balance after the first week → -1,000 Euros
• Incoming payments arrive between 18. und 25. Mai

You end up in the red for more than a week, even though the month is profitable overall. This pattern is very common. Without a plan, you usually notice it only when the bank alerts you. With a proper plan, you see it four weeks earlier and can take action before it becomes a problem.

Liquidity Planning in Excel and modern Alternatives

Many small and medium sized businesses start with Excel. It is a logical first step, but Excel reaches its limits quickly. Spreadsheets need constant manual updates, errors often appear late and it is difficult to simulate how payments will shift over time.

This is why more and more companies move to digital tools. These solutions connect banking, accounting and planning automatically, update the cash flow in real time and provide more reliable forecasts. Systems that use artificial intelligence recognise patterns earlier and help avoid liquidity gaps before they occur. Tools like Tidely make the transition easy because they are straightforward to use and bring all relevant data together in one place.

Some of these tools already include the Banxware Sofortfinanzierung. option. If your plan shows a gap, you can start a financing request directly from within the tool. This helps many businesses make decisions quickly without switching between platforms or dealing with extra steps.

You can also apply for Sofortfinanzierung separately at any time, no matter which tool you use. The process is always the same: a fully digital application that takes only a few minutes, a fixed fee with no interest risk and, once approved, payout usually within twenty four hours.

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The most common Mistakes in Liquidity Planning

In conversations with business owners, we see the same patterns across almost every industry. They often develop quietly in the background until a real problem appears.

• ‍Revenue is planned, but the actual payment dates are not
• Excel files are not updated for months
• Taxes, insurance or one off expenses are overlooked
• No scenarios are created
• Assumptions are too optimistic
• No reserves are planned

Liquidity issues rarely come from one single mistake. They almost always result from a series of small inaccuracies that build up over weeks or months and eventually lead to a cash shortfall.

Conclusion

Recent years have shown that financial stability does not depend on revenue alone but on liquidity. Companies do not run into trouble because they manage poorly. They run into trouble when payment dates and actual inflows do not line up. In 2026, staying flexible will be especially important. Rising financing costs, tighter lending practices and new regulatory requirements make it essential to identify risks early.

A rolling plan, realistic assumptions, different scenarios and digital tools help you spot gaps before they become critical and give you enough time to respond. And even with solid planning, short term gaps can still appear. In those moments, it is important to know fast and simple financing options. One solution is Banxware Sofortfinanzierung, which is digital, transparent, comes with a fixed fee and carries no interest risk.

In short, a clear liquidity plan helps you avoid unpleasant surprises and gives you the room you need to operate with confidence in your daily business.