Introduction
What is cash management training? In today’s extremely competitive environment, the need to improve free cash flow is gaining more and more importance. In many industries, access to equity or debt capital is difficult and the need for generating funds from within is on the rise.
Besides, companies not only have to make profits but must also be able to distribute it amongst the business owners and shareholders. An efficient cash flow management is therefore inevitable for the financial health of the company.
It is almost impossible for an organization to have an efficient cash management system without proper control over its working capital. According to a report by PWC, €1.36 trillion could be released from the balance sheets of global listed companies by improving working capital management. This course will cover all aspects of cash management with particular emphasis on working capital management.
The course will also provide the necessary understanding of different sources and applications of funds and their utilization. This includes Capital Investments appraisal, understanding various components of Working Capital, and advantages of having an efficient Enterprise Resource Planning system.
At the end of the course, the participants will have a better understanding of the ways to optimize free cash flow, maintain a fine balance of working capital, and investment of surplus funds to increase shareholders’ value.
Course Objectives
The objectives of this Cash Management Certification Course are to ensure that the participants:
- Appreciate the importance of an effective cash management system
- Understand various sources of finance with their utilization, based on the cost of capital
- Take sound investment decisions based on proper appraisal
- Obtain an overview of the financial statements and managementreports to evaluate the company’s performance
- Understand the importance of various accounting ratios covering profitability, solvency, and liquidity
- Use financial modeling to forecast the profitability and cash flows with sensible assumptions
- Understand the different components of working capital and reduce the operating cycle
- Explore the benefits of having an efficient E.R.P. system integrating financial information with other business units
- Understand the best practice of cash management and working capital management
Who Should Attend?
- CEOs, CFOs, and COOs
- Senior Executives, Members of Management Committees
- Members of the Audit Committees of the Board
- Treasury Staff
- External and Internal Auditors
- Financial / Management Accountants
- Shareholders and business owners eager to learn the fundamentals of cash flow planning and cash management
Course Outline
Module 1: Overview
- Introduction to Cash Management
- Importance of Cash Management
- Working Capital Management
- Optimizing Cash Management
Module 2: Profitability/ Liquidity/ Solvency
- Differences between Profitability/ Liquidity & Solvency
- Understanding Solvency Ratios
- Shareholder Equity Ratio
- Debt Equity Ratio
- Interest Coverage
Module 3: Cash Flow Forecast
- Importance of Cash Flow Forecast
- Establish assumptions based on Current Conditions
- Estimate Cash Inflow & Outflows
- Identify Short Term Investments
- Controlling Application of Funds
- Best Practices in Cash Management
Module 4: Cash Flow Presentation
- Reporting Non-cash Transaction
- Operating Cash Flow
- Investing Cash Flow
- Financing Cash Flow
- Lease or Buy Decisions
- Direct & Indirect Methods
Module 5: Optimizing Working Capital
- Significance of Working Capital
- How to determine Efficiency of Working Capital Management?
- Best Practices in Inventory Control
- Best Practices in Receivables Control
- Best Practices in Payables Control
- Reducing Operating Cycle
Module 6: Relationship Between Financial Statements
- Balance Sheet
- Profit & Loss Account
- Cash Flow Statement
- Difference between Profits and Cash Flow
Module 7: Capital Budgeting
- Source of Funds
- Calculating Cost of Capital
- Cash Flow based approach for Investment Appraisal
- Discounted Cash Flow Techniques
Module 8: Use Enterprise Resource Planning Modules
- Sales
- Bill of Material
- Material Management
- Procurement
- Production
- Finance