A4 Conference proceedings

Liquidity controlling system based on financial accounting - a proof-of-concept

Open Access publication

Publication Details
Authors: Talášek Tomáš, Stoklasa Jan, Kročil Ondřej, Slavíčková Pavla
Publication year: 2019
Language: English
Title of parent publication: KNOWCON 2019. Knowledge on Economics and Management: Profit or Purpose. Conference Proceedings
Start page: 261
End page: 267
Number of pages: 7
ISBN: 978-80-244-5543-3
JUFO-Level of this publication: 0
Open Access: Open Access publication


The paper investigates the possibility of using financial accounting data to build a real-time controlling system for liquidity. The aim is to use data available in everyday accounting operations and to suggest an early warning system for liquidity shortages. Such a system would be capable of raising red (or yellow) flags when problems with short-term, mid-term or long-term liquidity are to be expected. All this based on the current state of the accounting operations already put in the accounting system. We propose the use of fuzzy rules to implement expertly defined rules for liquidity assessment. This allows not only for the customizability for every user (manager), but also for the incorporation of imprecision in these rules. Another benefit of this approach is its ability to provide both linguistic and graphical description of the assessment of the current liquidity status (e.g. using traffic-lights). We also investigate the possibilities of visualisation of the current composition of assets. The proposed method utilizes the available information and provides a much needed summary concerning one chosen aspect of the company’s viability, in this case liquidity. It also stresses the need for having up-to-date information in the accounting system.

Last updated on 2020-20-03 at 10:03