Course Objectives:
Understand the fundamentals of effective management of cash flow, including the optimization of the level of working capital.
Develop practical experience of how to manage cash flow and optimize working capital to facilitate such delivery in real-life business situations.
Increase personal financial skill levels
Develop confidence through understanding the major drivers of successful financial performance.
Learn many technical skills, all of which lead to the ability to calculate the required figures and implement them into value-adding business decisions.
Understand balance sheets and profit-and-loss statements
Understand the importance of cash as the lifeblood of a business
Focus on key management areas of inventory, accounts receivable and accounts payable
Understand how to control and manage the cash flow of a business
Forecast cash flows and draft a cash budget
Evaluate projects based on their expected cash flows
Incorporate risk into financial decisions
Course Outlines
Day 1: Accounting for Cash & Performance:
A Performance Management Model
The Financial Language
Accounting Basics
Cash Flow and Working Capital
The 3 Key Financial Statements
Cash VS Profit
Using financial statement to manage cash and working capital
Day 2: Measuring & Improving Performance:
The Impact of Inflation on Financial Performance
Measuring Performance: Ratios and KPIs
Benchmarking of Performance
Ratios for cash and working capital management
Basics of working capital management
Credit Risk Management
Financial modeling for cash and working capital management
Spreadsheet modeling and tools and approaches
Day 3: Strategic Cash Management:
Cash & Cost modeling
The Economic Value Model
The Time Value of Money and Discounted Cash Flow (DCF)
The Key Investment Indicators
Defining the Right Base Case, Sensitivity and Risk Analysis
Treatment of Working Capital
Valuing Companies and Acquisitions
Where Does Net Present Value (NPV) Come From?
The Drivers of Value
Learning from Experience and Delivering Project Value
Day 4: Optimisation of Working Capital:
Optimization not Minimisation
Key Issues
Stock
Debtors
Creditors
Stores
Settlement Options
The Cost of Working Capital
Long term
Short term
Practical Examples
Engaging the Organisation
Day 5: Cash Flow Planning and Forecasting:
Approaches to managing cash resources
Cash flow forecasting methods
An integrated approach to risk management
Techniques for managing risk
Building a key driver cash flow forecast
Sensitivity testing cash flow forecasts
Targeted Groups:
Treasury Team Members
Commercial Managers
Receivables and Payables Team Members
Planning and Budgeting Managers
Financial and Management Accountants
Capital Investment and Project Management Team Members
