Cash Flow and Working Capital Management

In recent years there has been a growing recognition that, in the long run, effective management of cash flow is more important than profit. Long-term cash flow is the real value of a business. It has also been recognized that there is significant potential for improved financial performance from the more effective management of working capital – both directly from immediate cash gains and reduced net interest costs, and indirectly through its impact on increased profitability and return on capital employed. A key challenge in achieving these performance improvements results from the fact that actual levels of working capital and delivery of cash flow are effectively determined by the day-to-day actions of a great many managers and staff, which in large corporations often run into tens of thousands.

COURSE OBJECTIVES:

At the end of this course the participants will be able to:

• Understand the fundamentals of effective management of cash flow, including the optimization of the level of working capital.
• Develop practical experience of how to manage cash flow and optimize working capital to facilitate such delivery in real-life business situations.
• Increase personal financial skill levels
• Develop confidence through understanding the major drivers of successful financial performance.
• Learn many technical skills, all of which lead to the ability to calculate the required figures and implement them into value-adding business decisions.
• Understand balance sheets and profit-and-loss statements
• Understand the importance of cash as the lifeblood of a business
• Focus on key management areas of inventory accounts receivable, and accounts payable
• Understand how to control and manage the cash flow of a business
• Forecast cash flows and draft a cash budget
• Evaluate projects based on their expected cash flows
• Incorporate risk into financial decisions

TARGETED AUDIENCE:

Treasury Team Members, Commercial Managers, Receivables and Payables Team Members, Planning and Budgeting Managers, Financial and Management Accountants, Capital Investment and Project Management Team Members.