AAT Essentials - Cash Flow & a Healthy Business

The availability of cash enables a business to survive and prosper and is the primary indicator of business health. Through exercises using worked examples, this AAT Essential will help improve students' effectiveness at managing the inflow and outflow of cash, thus helping to protect the financial security of their business.

This course consists of the following:

Session 1 - Cash & the cash budget

• Why cash is important in a business
• Timing of cash flows
• Importance of estimating likely cash flows pattern
• How to prepare a cash budget

Session 2 - Monitoring & controlling cash flows

• How to use the cash budget
• Importance of comparing budgeted and actual cash flows
• Why differences should be investigated
• Possible reasons for differences and subsequent actions that can be taken

Session 3 - Cash flow & credit customers

• The risks of giving credit to customers
• How to assess the creditworthiness of customers
• How to guard against non-payment by credit customers
• Strategies to deal with late payers

Students must be a manager/owner looking for a basic understanding of accounting statements and procedures.
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