Cash Flow Management and Working Capital Optimisation

In an environment where ‘Cash is King’ this course will teach you how to manage your working capital and maximise the use of cash within your organisation. Working capital optimisation and management is the art, and increasingly the science, of organising a company’s short term resources to sustain ongoing activities, mobilise funds and optimise liquidity. This 3-day course will provide and in-depth analysis of an organisation’s working capital accounts throughout each phase of the business operating cycle and looks at how to manage them for maximum efficiency. The course is aimed at finance professionals who have an impact of the working capital of a company or organisation, including corporate treasurers, accountants and purchasing specialists. It deals with both basic principles and wider practical strategies for businesses to employ. Some of the areas the course will cover include: Update on latest developments, tools and techniques to permanently improve your business’s cash position and improve working capital What drives cash flow and opportunities for improvement? Discover relationship between cash flow and profit and risk Customer Payments – International issues and solutions Lean principles applied to accounts receivable Develop meaningful KPI’s that measure the effectiveness of your working capital and cash management strategy Gaining more credit from suppliers Identifying and managing vendor risks Plan and forecast working capital with greater effectiveness and accuracy Who should attend Accountants with reporting and/or recording responsibilities for working capital accounts Business managers with responsibilities for managing the cash operating cycle Finance professionals in the treasury function of their organisations Business owners wanting to analyse the cash operating cycle of their companies
Day 1 Working Capital Policy - Importance of Working Capital - Operating Cycle Analysis - The cash conversion cycle Levels of Working Capital Investment - Profitability versus risk Use of short term and long term debt - Profitability versus risk - Fluctuating current assets - Permanent long term assets Short term credit - Cost of short term funds Trade credit - Cost of trade credit - Stretching Accounts Payable - Accrued expenses and deferred income Loans - Single loans - Line of Credit - Revolving credit agreement Accounts Receivable Loans - Pledging accounts receivable - Factoring accounts receivable - Warehouse financing arrangements Comprehensive Case on Managing Working Capital Day 2 Managing Accounts Receivable - Elements of receivables management - Monitoring the receivables cycle - Accounting for uncollectible accounts - Sales financing - Credit reporting - Asset based financing - Cases (2) on receivables management - Inventory and Working Capital - Elements of inventory management - Monitoring inventory turnover - Economic order quantity - Balancing inventory levels - Just in time - Managing your supply chain - Asset-based financing - Cases (2) on inventory management Day 3 Third Party Financing - Payable management - Payables monitoring - Cash conversion cycle revisited - Payables and payroll alternative Putting it altogether - Simulation: Working capital management - Debriefing the simulation Managing working capital - Risk analysis - Risk management - Efficiency of working capital - Liquidity and working capital - Costing transactions that involve working capital - Cases (2) on managing working capital Course summary and close