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 businesses on a trajectory for long-term profitability, poor management of cash flow might result in failure if business “runs out of cash”.

This programme 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 

Titles include

• Understanding significance of cash flow analysis
• Acquire tools & techniques required to realistically forecast the key cash flow drivers
• Apply a disciplined approach to understand key drivers of cash flow, evaluate the quality and sustainability of company’s debt capacity and debt servicing capability

Who Should Attend

• Financial and accounting staff
• Supply chain and procurement team members
• Receivables and payables staff
• Planning and budgeting managers
• Capital investment and project team members

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 analysing 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 modelling

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 efficiency of the cash cycle
• Enhancing financial systems to improve cash flow

DAY 3

 Enhancing Operating Cash Flows

• Significance of operating cash flow
• Cost behaviour and cost-volume-profit (CVP) analysis
• What drivers profits 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 cash flow method
• Discounted cash flow analysis using Excel Modelling

DAY 5

 Techniques of Cash Flow Forecasting

• Methods to 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