Cash Flow Management & Budget Preparation

Cash is the most important resource in any business. It is therefore surprising that it is generally the most poorly managed aspect of many organizations. Cash flow management tend to take the form of crisis management at the end of each month.

A common scene that happens in many organization every month is to search for pending invoices and what money can be collected and transferred into the bank account...what a stress.

Correct cash flow does not start with a desperate call to your bank. Proactive cash flow management start with managing your revenue and your business creditor properly, by planning ahead. You should treat your company Cash Flow as the lifeblood of your business.

Course Objectives:

• Understand the importance of cash flow
• Understand the difference between profits and cash flow
• Understand the techniques of making long-term investment decisions for a healthy cash flow
• Understand the importance of managing working capital for a healthy cash flow
• Understand the importance of budgets as a planning and control tool for cash flow management
• Understand in analyzing financial statements with a view to improve the organization's cash flow.
• Learn the budgeting skills
• Learn the skills in analyzing and selecting appropriate investment projects
• Learn the skills in forecasting cash flow requirements
• Learn the skills in monitoring cash flow

Course Content:

• Module 1 - Introduction
• • Importance Of Cash Flow Management
• • Financial Ratios To Monitor Liquidity
• • The Operating Cycle
• • The Cash Conversion Cycle
• • Case Study
• Module 2 - Cash Management Models & Financial Forecasting
• • Cash Management Models
• • Percentage Of Sales Method
• • Forecasting Spontaneous & Discretionary Financing
• • Case Study
• Module 3 - Managing Working Capital Components
• • Importance & Implications Of Working Capital To Cash Flow
• • Risk-Return Trade-Off
• • Trade Credit Evaluation
• • Short-Term Financing Evaluation
• • Inventory Management
• • Accounts Receivable Management
• Module 4 - Preparation & Presentation Of Cash Flow Statements
• • Purpose Of Cash Flow
• • Cash Flow From Operating Activities
• • Cash Flow From Investing Activities
• • Cash Flow From Financing Activities
• • Preparation & Interpretation Cash Flow Statement
• • Case Study
• Module 5 - Budgeting - Inter-relationships & Preparation
• • Overview And Benefits Of Budgeting
• • Budget As A Planning & Control Tool
• • Human Aspects Of Budgeting
• • Preparing The Various Budgets
• • Case Study
• Module 6 - Capital Budgeting
• • Forecasting Relevant Cash Flows
• • Time Value Of Money
• • Discounted Cash Flows
• • Tax Impact On Project Cash Flows
• • Payback Period
• • Accounting Rate Of Return
• • Net Present Value
• • Internal Rate Of Return
• • Net Present Value Versus Internal Rate Of Return