Objectives
By the end of this programme you will be able to:
- Acquire an understanding of the fundamentals of effective management of cash flow, including the optimisation of the level of working capital.
- Develop practical experience of how to manage cash flow and optimise 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 a number of technical skills, all of which lead to the ability to calculate the required figures and implement them into value adding business decisions.
Training Methodology
This seminar is strongly participative, with a learning-by-doing style that makes extensive use of examples, and team-based exercises and case studies (both numeric/analytical and non-numeric/descriptive), and open discussion. A fair level of numeracy is an advantage on this course as is some prior familiarity with the financial basics of income statements, balance sheets, and cash flow statements (although this is not essential).
The course will include refresher sessions on accounting and the basics of discounted cash flow (DCF). Each day will comprise several sessions, introducing new material to build on the learning from previous sessions. The program is designed to support the company’s organisational values, enabling employees to learn key finance skills.
Organisational Impact
Organisations will benefit from trained managers who will:
- Manage cash and working capital more effectively (including inventory and accounts receivable).
- Be pro-active in seeking and finding approaches to improve both cash and working capital management.
- Communicate the importance of improving cash and working capital management to colleagues.
- Help others to improve cash and working capital management.
- Better budget and plan cash and working capital.
Personal Impact
- Understand the basic concepts of finance as it relates to their businesses.
- Read and understand balance sheets and profit-and-loss statements.
- Be aware of the singular importance of cash as the life blood 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.
Day 1: Accounting for Cash & Performance
- A Performance Management Model.
- The Financial Language and Accounting Basics.
- Cash Flow and Working Capital.
- The 3 Key Financial Statements.
- Cash Vs Profit.
Day 2: Measuring & Improving Performance
- Measuring Performance: Ratios and KPIs.
- Benchmarking of Performance.
- Ratios for cash and working capital management.
- Basics of working capital management.
- Credit Risk Management.
Day 3: Strategic Cash Management
- The Time Value of Money and Discounted Cash Flow (DCF).
- Defining the Right Base Case, Sensitivity and Risk Analysis.
- Treatment of Working Capital.
- Valuing Companies and Acquisitions.
- The Drivers of Value.
Day 4: Optimisation of Working Capital
- Optimisation not Minimisation.
- Stock, Debtors, Creditors and Stores.
- Settlement Options.
- The Cost of Working Capital.
- Long term and Short term with Practical Examples.
Day 5: Final Session
- Course Summary and Checklists.
- Cash Budgets & Budgeting.
- Financial Skills and Further Development.
- Open Forum.
- Course Review.
Language: English
Place: London – UK
Venue (TBC): Radisson Edwardian Sussex Hotel (Address: 19-25 Granville Pl, Marylebone, London W1H 6PA)