SME Cash Flow Management (CFM)

Fresh economic challenges require innovative and proactive responses before we all become sitting ducks. Surging energy costsglobally and intense economic competition from labour surplus countries are driving some our customers out of business – some sooner than we thought!

Objective:

• To provide an introduction to working capital management skills for the improvement of business cash flow, completing with the awareness in identifying cash flow risk and cash planning to ensure business sustainability.

Upon Completion:

• Relate customer collection to working capital management
• Participate in credit policy formulation and control activities
• Conduct basic analysis of customers’ credit conditions and organize and supervise collection efforts
• Understand how stocks management can affect cash flow management
• Formulate effective stocks policies in improving stocks management
• Conduct working capital analysis to review its effectiveness and action plans to improve further

Course Outline:

• Working Capital _ Definition & Determination    
• Financing structure of a business
• Working capital and liquidity
• The business cycles and the economy
• Managing Inventories    
• Understanding the concept of Stock Turnover
• Computing & Application of Stocks Turnover
• Implications of Stocks Turnover
• Risk in Inventories Management
• Managing accounts receivable    
• Importance of Collection Days
• Computing & Application of Collections Days
• Credit Management Risk
• Collection strategies for consistent cash flow
• Cash Flow Management & Cash Flow Risks    
• Working capital cycle & adequacy
• Cash flow forecast & planning
• Other factors in perfecting your Cash Planning