Cash Flow Management and Forecasting

Introduction

Cash flow is the lifeblood of every business and efficient cash management is key to keep the business rolling in good times and bad times. Even for businesses on a trajectory for long-term profitability, poor management of cash flow might result in failure if the business “runs out of cash”.

This program offers an opportunity to acquire and deploy skills and ideas to achieve improved cash management strategies. The knowledge acquired will enhance the cash forecasting techniques and will provide new insights on how to improve financial and operating performance. In this programme, you will participate in many aspects of modern.

Course Objectives

This Cash Flow Management & Forecasting training course aims to enable participants to achieve the following objectives:

• Acquire fundamental principles of accounting for cash flow.
• Expand skills in analyzing and interpreting cash flow statements.
• Apply effective working capital optimization strategies.
• Implement effective capital investment evaluation and decision-making.
• Device an optimal business funding strategy.
• Prepare realistic cash flow forecasts using financial modeling.

Course Outlines

DAY 1: Introduction to Cash Flow Management

• Understanding the importance of cash flow management.
• Fundamentals of cash flow and working capital.
• Principles of business accounting and financial statements.
• How profit is different than cash flow.
• Analysis of cash flow statement.
• The drivers of cash flow, liquidity, and solvency.

DAY 2: Significance of Working Capital

• Cash flow and working capital.
• Recognizing the working capital cycle.
• Techniques to improve inventories and accounts receivable management.
• Key cash flow and working capital management ratios.
• Improving the efficiency of the cash cycle.
• Enhancing financial systems to improve cash flow.

DAY 3: Enhancing Operating Cash Flows

• Significance of operating cash flow.
• Cost behavior and cost-volume-profit (CVP) analysis.
• What drivers profit and shareholder value?
• Improving return on investment.
• Boosting asset management efficiency.

DAY 4: Sources of Finance and Capital Budgeting

•  Meaning, nature, and significance of business finance.
• Sources of business finance.
• Analysing and managing capital structure.
• Calculating the cost of capital.
• Key principles of capital budgeting.
• Capital investment decision-making using the cash flow method.
• Discounted cash flow analysis using Excel Modelling.

DAY 5: Techniques of Cash Flow Forecasting

• Methods for managing cash resources.
• Cash flow forecasting techniques.
• Risk management approach to cash flow forecasting.
• Techniques for managing risk.
• Sensitivity analysis of cash flow forecasts.
• Best Practices in Cash Management.