Introduction

Effective cash flow management has become more important than profit for long-term business success. This seminar focuses on optimizing working capital, managing accounts receivable, and improving inventory management. Participants will learn strategic techniques for managing cash and working capital, along with tools for planning, forecasting, and monitoring cash flow. The course combines theoretical principles with real-life case studies to provide practical skills in financial modeling and effective working capital management.

Objectives

• Acquire an understanding of 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 a number of technical skills, all of which lead to the ability to calculate the required figures and implement them into value-adding business decisions.

Target Audience

• Finance managers, financial controllers, and accounting professionals
• Cash managers and treasury professionals responsible for liquidity and cash planning
• Credit controllers and accounts receivable/payable specialists
• Working capital and financial analysts
• Project and business managers involved in financial decision-making
• Small and medium enterprise (SME) owners and entrepreneurs
• Banking and investment professionals involved in credit and cash flow assessment
• Procurement and supply chain managers affecting inventory and payment cycles
• Internal auditors and financial risk management professionals
• Professionals seeking to strengthen cash flow, liquidity, and working capital management skills

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: Optimization 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: Final Session

• Course Summary and Checklists

• Cash Budgets & Budgeting

• Financial Skills and Further Development

• Open Forum

• Course Review