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Course Outline
Day 1: Fundamentals of Cash Management and Daily Positioning
- Introduction to corporate cash management
- Cash management roles and responsibilities
- The interplay between treasury, finance, accounting, procurement, and operations
- Differentiating profit from cash flow and liquidity
- Analyzing cash inflows, outflows, and liquidity
- Core concepts 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
- Practical exercise: Preparing the daily cash position
Day 2: Cash-Flow Forecasting and Liquidity Planning
- Fundamentals of cash-flow forecasting
- Direct and indirect forecasting methods
- Determining forecast horizons and planning periods
- Implementing rolling forecasts and liquidity planning
- Forecasting customer receipts and operational payments
- Forecasting debt repayments and capital expenditures
- Navigating forecast uncertainty
- Scenario planning and sensitivity analysis
- Analyzing forecast variances
- Enhancing forecast accuracy and governance
- 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
- Improving collection processes and invoicing
- Managing overdue receivables
- Strategies for supplier payments
- Evaluating early payment discounts
- Techniques for inventory optimization
- Cross-functional initiatives for working capital
- Practical working capital analysis exercise
- Group activity: Planning improvements
Day 4: Banking, Payments, Funding, and Cash Concentration
- Managing corporate bank accounts
- Banking relationship management
- Reviewing bank fees and services
- Domestic and international payment methods
- Controls for payment approval and authorization
- Fraud prevention and payment security
- Segregation of duties and internal controls
- Cash concentration and pooling structures
- Zero balancing and target balancing
- Intercompany funding arrangements
- Short-term funding options
- Overdrafts, revolving facilities, and loans
- Short-term investments and deposits
- Practical exercise: Comparing funding options
- Case study on payment fraud prevention
Day 5: Cash Risk, Reporting, Technology, and Improvement Planning
- Managing liquidity and funding risks
- Mitigating counterparty and banking risks
- Addressing operational and payment risks
- Handling interest-rate and foreign-exchange risks
- Treasury technology and cash management systems
- Navigating bank portals and treasury management systems
- Automated reconciliation and reporting
- Cash management dashboards and KPIs
- Developing policies and governance structures
- Management 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 functions.
- Familiarity with financial statements and cash flow concepts.
- Previous experience in finance, accounting, treasury, budgeting, or similar business roles is advantageous but not required.
- Basic spreadsheet proficiency for forecasting and analysis tasks
35 Hours
Testimonials (2)
Fun to talk
Jihan Fadila - BAF
Course - Root Cause Analysis (RCA) for Internal Audit
Very practical. Trainer was very flexible in ensuring we meet our needs.