Surplus cash has to be there when you need it
Investing what's left over is the easy part. The hard part is getting the money back when cash needs it. A security that matures two weeks after a shortfall doesn't help, even though the money exists. And rolling it over by default, which is what happens when nobody is watching the maturity date, can leave the company without that cushion right when it mattered.
In FLIQO every investment is part of the cash forecast: you see when the money goes out, when it comes back and what happens to cash in between.
Every investment, with its flows in your cash
When you record an investment, such as a time deposit, a government bond or units in a money market fund, FLIQO creates the cash movements that go with it: the outflow on the day it's funded, the coupons, and the return at maturity, net of withholding tax. Nobody has to key them in separately, so nothing gets counted twice.
When it's set up, you state what happens at maturity: the money comes back to the account, the principal rolls over, or principal and interest both roll over. The chain of rollovers stays linked.
Each company chooses how far to go: a light register with the essentials, the cash flows and limit tracking, or the full module, with daily valuation and an export to the accounting system.
Where the money is placed
The total invested breaks down by position, by availability (on demand, term or restricted), by maturity bucket, by issuer and by currency. You can see how much could turn into cash right away, when each bucket matures and how much depends on a single issuer.
Investments count toward their issuer's limit, alongside the account balances held at that institution, so limit tracking sees the whole exposure and not just what's sitting in bank accounts.
Signals on what needs deciding
FLIQO checks the portfolio against projected cash and against limits, and flags what needs a decision:
- A maturity that arrives after a shortfall. The money exists but arrives late, and the signal says how many days early it would have to be sold.
- A maturity that cash is going to need, where rolling it over would leave you short.
- A maturity with surplus cash around it: a chance to reinvest that slips away if nobody decides.
- An issuer close to its limit before you roll over with it.
- Several maturities on the same day.
- An investment that has already matured but is still open in the system.
Valuation and accounting classification
In the full module, each position is measured at amortized cost and at fair value, and FLIQO says which of the two goes into the financial statements. The accounting category isn't typed in by hand: it follows from the portfolio's business model and the terms of the security, and the portfolio policy is signed off by a second person.
Each day's valuation is stored with the data behind it, so you can later answer what was reported at a month-end close. When there's no price to measure a position with, FLIQO says so instead of putting in a figure that only looks right.
The portfolio is reconciled against each custodian's statement, and the expected credit loss on each position is recognized and signed off by a person, even though the system suggests the calculation.
Ask Aria
You can ask Aria which investments mature this month, how much cash frees up over the next few weeks, or how the portfolio splits by issuer and by instrument. She answers from the same data as the screen, within the permissions of whoever is asking.
Frequently asked questions
What kinds of investments can we record?
Time deposits, fixed-rate and index-linked government bonds, money market and mutual funds, and other fixed-income instruments. The instrument catalog grows with what each country needs.
Do maturities have to be added to the forecast by hand?
No. The investment creates its own cash movements when it's activated, and they update if the rate on an index-linked security resets.
Does FLIQO buy or sell the investments?
No. Trades go through your bank or broker as usual. FLIQO records the investment, tracks it and flags what needs deciding.
Does it replace the accounting system?
No. FLIQO measures the positions and hands the figures to your accounting system, where the journal entries are posted.