Introduction

This 10-day program will provide a leading-edge forum for you to significantly improve your working capital management skills. You will gain a comprehensive range of very practical and highly effective tools and approaches that can be immediately implemented upon your return to work.

By attending this event, delegates will understand:

• The importance of credit to the company and the economy
• The “cost of credit” and its impact on company profitability
• Practical steps that reduce bad debt losses and “uncollectible” debtors
• How to use different tools and techniques to maximize cash collection effort
• How to effectively manage cash and working capital to reduce costs and improve cash flow
• How leading companies from across the globe are achieving best practice in Accounts Receivable
• The importance of the accounts payable function with regard to its links with the supply chain and cash flow
• The integrated systems of purchase order processing, stock (inventory) control, purchase ledger and cash payments and their links with the general ledger
• How to effectively manage cash and working capital to reduce costs and improve cash flow
• The impact of risk and uncertainty on the business and its impact on accounts payable and cash flow
• How leading companies from across the globe are achieving best practice in Accounts Payable

 Who Should Attend?

This program provides a user-friendly environment to develop the knowledge and techniques related to both accounts receivable and accounts payable that are valuable for:

• Finance Executives
• Accountants
• Others who are working within Transactional Finance, Accounts Payable or Accounts Receivable process or who wish to develop a practical toolkit to complement their existing professional or technical skills

This program is also ideal for those wishing to develop their understanding of how Working Capital efficiencies can make a significant improvement to profitability or you may already be employed in any of these functions within the business.

Course Objectives of Managing the Cash Cycle

• Work effectively with the fundamentals of accounts payable, accounts receivable, financial accounting and the supply chain
• Understand and apply the fundamentals of effective transactional management systems
• Review and comment on payment methods and cash management
• Understand the need to incorporate risk and uncertainty into transactional processing and cash flow management
• Identify best practice across all industries by examining case studies from across the globe

Course Methodology of Managing the Cash Cycle

The instructor engages all of the delegates, both in the presentation of the material and the program sessions, so that everyone leaves with a working knowledge of the material and the ability to use them immediately.

Course Outline of Managing the Cash Cycle

DAY 1 - An introduction to Accounts Receivable

• Working Capital and Cash Management

• Understanding “the cost of credit”

• The ‘order to cash’ process

• Understanding “risk” in “credit”

• Accounts Receivable and effective customer service

• Identifying underperforming areas to increase customer satisfaction

DAY 2 - Customers and trading terms

• Terms of trading

• Tools and techniques of financial analysis: ratios; trends; common size analysis

• The best performance measure – cash or profit?

• Financial distress and the Altman’s Z score-type analyses

• Trend analysis

• Value-added analysis of a financial statement

DAY 3 - Developing effective strategies to maximize cash collection

• Identifying effective “pre-delinquency” collection campaigns

• Defining “post-delinquency” activities

• Customer sensitive collection strategies

• Collection techniques and letter cycles

• Appropriate internal and external escalation steps

• Using workflow management to maximize collector performance

DAY 4 - Practical collection tools and techniques

• Eliminating barriers to payment

• Recognizing excuses and delaying tactics

• Providing solutions to non-payment

• Telephone collection techniques

• Negotiation skills for successful collections

• Building relationships with customers

DAY 5 - Managing the Receivables Ledger

• Developing effective internal relationships to maximize performance

• Setting targets and tracking performance

• Managing information that dazzles

• Defining meaningful KPI’s

• Latest Developments in Accounts Receivable

DAY 6 - Accounts Payable, Financial Accounting and the Supply Chain

• Accounting and financial information: Accounts Payable in context

• Sources of finance

• The supply chain

• Financial position and financial performance

• Cash flow and Working Capital

• Why is cash flow so important?

DAY 7 - Achieving World Class in Accounts Payable Processes

• Defining Best Practice in AP

• Moving beyond P2P

• Managing Risk

• Principles of Best Practice

• End to End AP Process

• Defining the issues in Accounts Payable

DAY 8 - Improving Invoice Processing and Operational Management

• Invoice Handling and Approval Processes

• Verifying invoice data

• Paying “low value” items

• How to avoid duplicate payments

• Making the best use of staff time: limiting telephone calls to AP

• Does Petty cash management belong in Accounts Payable?

DAY 9 - Harnessing Technology in Accounts Payable Processes

• Master Vendor File Management – getting it right from the start

• Travel & Entertainment

• Policy management

• Cash advances and employee reimbursement

• Process improvement through imaging and workflow

• Using the internet for AP effectiveness

DAY 10 - Making the Payments and Maintaining the Relationships

• Communications & Customer Relations

• Payments status information for vendors and internal customers

• Improving Procure to Pay(P2P)Cycle

• Payments and Payment Solutions: Accounts Payable or Treasury?

The program will conclude with an interactive case study exercise to allow participants an opportunity to apply the learning of the week and define a practical solution.