Cash flow management software in Morocco: a 13-week forecast

Profitable but out of cash: the classic trap for Moroccan SMEs

Many companies in Morocco are profitable on paper yet struggle at month end. The reason is simple: customers pay at 60 or 90 days, often by LCN bill of exchange, while salaries, rent, CNSS social security and VAT fall on fixed dates. The gap between what you invoice and what you collect is your working capital requirement, and it is funded by your cash.

Today's bank balance says nothing about what is coming. To decide on a supplier order, a new hire or a request for an overdraft facility, you need a view several weeks ahead. That is what a cash flow plan is for.

Why a 13-week horizon?

Thirteen weeks is one quarter broken down week by week. It is short enough to rely on real data (issued invoices, supplier invoices received, bills in the portfolio, known due dates) and long enough to leave time to act: chase a customer, negotiate terms, postpone a purchase or talk to your banker.

A monthly forecast smooths out the dips: a month can end positive even though cash was negative for ten days in the middle. A weekly view shows exactly the week when the balance goes below zero.

Worked example: four weeks of cash

You start with 85,000.00 DH. Week 1: a customer pays a 25,000.00 DH invoice and you pay 12,000.00 DH rent, balance 98,000.00 DH. Week 2: a 48,000.00 DH supplier payment, balance 50,000.00 DH. Week 3: a 40,000.00 DH customer LCN falls due, balance 90,000.00 DH. Week 4: 62,000.00 DH of salaries, balance 28,000.00 DH.

In total, 65,000.00 DH comes in and 122,000.00 DH goes out. But if the 40,000.00 DH LCN bounces or is postponed, week 4 ends at −12,000.00 DH. Knowing this three weeks in advance gives you time to chase the customer or arrange financing.

What SOGESTIO puts into your forecast

The forecast relies on data already in SOGESTIO, with no separate spreadsheet to maintain. Every customer invoice carries a due date calculated from its payment terms (cash, 7, 15, 30, 45, 60, 90 days or custom); every supplier invoice has its own. Cheques and bills in the portfolio have their due date and status.

• 13-week cash flow forecast
• Customer receivables and supplier payables with due dates
• Cheques and LCN bills received and issued, tracked by due date and status
• Bank accounts updated by MT940 or CSV import
• Petty cash (cash in and cash out)
• Recurring invoices for subscriptions and rents

Managing receivables: unpaid invoices, late payments and DSO

The best source of cash is often the money your customers already owe you. The SOGESTIO dashboard shows receivables, unpaid invoices and late payments, and reports calculate your customers' average payment time (DSO). Example: with 180,000.00 DH of receivables against monthly revenue of 120,000.00 DH, your customers pay on average at 45 days.

A credit limit per customer stops a slow payer's balance from growing unchecked. The customer portal gives each client a private link to view and download their invoices, which removes the 'never received it' excuse. Payment terms between businesses are regulated by Law 69-21; have your terms reviewed by your accountant.

Several companies? A consolidated cash view

With the Group plan, the consolidated view brings together revenue and cash for all companies, alongside each company's own view. An owner with a trading company and a services company sees at a glance which one needs cash and which one has it.

Which plan includes cash flow management?

The Banking & treasury module is included in the Pro plan at 449 DH excl. VAT per month (4,490 DH excl. VAT per year) and in the Group plan at 990 DH excl. VAT per month, as well as in the On-premise edition on quotation. The Starter plan tracks petty cash and expenses, without a bank forecast. Try the forecast during the free 14-day trial, no card required.