Introduction

In recent years there has been a growing recognition that, in the long run, effective management of cash flow is more important than profit. Long-term cash flow is the real value of a business. It has also been recognized that there is significant potential for improved financial performance from the more effective management of working capital – both directly from immediate cash gains and reduced net interest costs, and indirectly through its impact on increased profitability and return on capital employed. A key challenge in achieving these performance improvements results from the fact that actual levels of working capital and delivery of cash flow are effectively determined by the day-to-day actions of a great many managers and staff, which in large corporations often run into tens of thousands.

This highly participative 5-day seminar covers the principles, techniques and skills involved in the effective management of cash flow and working capital in any business, blending a clear theoretical framework with extensive use of real-life examples and case studies.

Key areas covered in this program include:

• Optimizing working capital

• Managing accounts receivable

• Managing inventory

• Strategic management of cash & working capital

• Planning, forecasting and monitoring cash and working capital

• Financial modeling tools and techniques for cash and working capital management

Objectives

By the end of this program you will be able to:

• 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 and financial controllers
• Treasury and cash management professionals
• Working capital management specialists
• Corporate finance professionals
• Management accountants
• Budgeting and planning professionals
• Credit control and accounts receivable managers
• Inventory and supply chain finance professionals
• Business analysts and performance improvement professionals
• Operations and project managers involved in cost and cash control
• Internal auditors and risk management professionals
• Entrepreneurs and business owners focused on liquidity and cash flow management
• Professionals seeking practical skills in cash flow and working capital optimization

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

The course will have a number of breakout sessions, multiple-choice, and other question and answer sessions, and case studies to demonstrate the concepts covered and provide real live practical examples, which will facilitate learning.