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Course Outline

Day 1: Essentials of Cash Management and Daily Positioning

  • Overview of corporate cash management
  • Cash management roles and duties
  • Connections between treasury, finance, accounting, procurement, and operations
  • Differences among profit, cash flow, and liquidity
  • Cash inflows, outflows, and liquidity analysis
  • Core principles of the cash conversion cycle
  • Cash flows from operating, investing, and financing activities
  • Analyzing bank balances and available cash
  • Techniques for daily cash positioning
  • Challenges in achieving cash visibility
  • Daily liquidity reporting practices
  • Practical exercise: Preparing a daily cash position

Day 2: Cash-Flow Forecasting and Liquidity Strategy

  • Fundamentals of cash-flow forecasting
  • Direct and indirect forecasting methodologies
  • Forecast horizons and planning intervals
  • Rolling forecasts and liquidity planning strategies
  • Forecasting customer receipts and operational expenditures
  • Planning for debt repayments and capital expenditures
  • Navigating forecast uncertainty
  • Scenario planning and sensitivity analysis
  • Analyzing forecast variances
  • Enhancing forecast accuracy and governance structures
  • Practical exercise: Creating a 13-week cash-flow forecast
  • Workshop on forecast variance analysis

Day 3: Working Capital and Internal Cash Optimization

  • Fundamentals of working capital management
  • Optimizing receivables, payables, and inventory
  • Days Sales Outstanding (DSO)
  • Days Payable Outstanding (DPO)
  • Inventory Holding Days
  • Analyzing the Cash Conversion Cycle
  • Enhancing collection processes and invoicing efficiency
  • Managing overdue receivables effectively
  • Strategies for supplier payments
  • Evaluating early payment discounts
  • Techniques for inventory optimization
  • Cross-functional initiatives for working capital improvement
  • Practical working capital analysis exercise
  • Group activity: Developing improvement plans

Day 4: Banking, Payments, Funding, and Cash Concentration

  • Management of corporate bank accounts
  • Banks relationship management strategies
  • Reviewing bank fees and service levels
  • Domestic and international payment methods
  • Controls for payment approval and authorization
  • Fraud prevention and payment security measures
  • Segregation of duties and internal control mechanisms
  • Cash concentration and pooling structures
  • Zero balancing and target balancing techniques
  • Intercompany funding arrangements
  • Options for short-term funding
  • Utilizing overdrafts, revolving facilities, and loans
  • Short-term investments and deposits
  • Practical exercise: Comparing funding options
  • Case study on payment fraud prevention

Day 5: Cash Risks, Reporting, Technology, and Improvement Planning

  • Managing liquidity and funding risks
  • Counterparty and banking risks
  • Operational and payment risks
  • Interest-rate and foreign exchange risks
  • Treasury technology and cash management systems
  • Bank portals and treasury management systems
  • Automated reconciliation and reporting tools
  • Cash management dashboards and KPIs
  • Developing policies and governance frameworks
  • Management reporting and liquidity reporting
  • Integrated cash management case study
  • Planning for cash management improvements
  • Final assessment and participant presentations

Requirements

Participants should ideally possess:

  • A foundational understanding of finance, accounting, or treasury operations.
  • Familiarity with financial statements and cash flow principles.
  • Experience in finance, accounting, treasury, budgeting, or related business roles is advantageous but not compulsory.
  • Basic proficiency in spreadsheet applications for forecasting and analytical tasks.
 35 Hours

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