- Participants / Prerequisite
Background on the company's Working Capital Requirements (WCR). Accounting notes in financing. Evaluating and managing inventories. Profiles, policies, and techniques for managing accounts payable and receivable. Analysis of connections between needs, operations, and investment.
- Learn the different types of Working Capital Requirements
- Calculate and analyze your company's WCR
- Evaluate inventories and service levels
- Analyze accounts receivable and accounts payable
- Master techniques and tools for optimizing your WCR
- Definition: WCR, or Working Capital Requirements.
- Accounting refreshers: Purchases and sales, inventories and service levels, balance sheet and profit/loss account, etc.
- Corporate financing refreshers: Working capital, working capital requirements and cash needs, etc.
- Reviewing different types of situation by sector: Different WCRs for different types of companies.
- Significant figures and examples.
- Case studyCalculating WCR in a small/medium construction firm.
- Why is WCR an inherent "necessary evil"?
- Why should it be kept to the minimum, from a financial viewpoint?
- Operating WCR and total WCR. Reviewing specific accounts (tax and employee benefit payables). WCR standards.
Case study Detailed review of three types of accounts.
- Inventory evaluation method.
- What is a service level?
- How is it calculated?
- Customer profiles.
- Trade practices.
- Customers' powers.
- Payment terms and methods. LME Law of 2008 (France). The problem with bad payers.
- Subcontracting and procurement policy.
- Supplier profiles.
- Suppliers' practices and powers.
- Payment terms and methods.
- Inventory management: Elements of production and logistics policy.
- Managing accounts receivable: Factoring, Dailly Law (France), financing, administrative expenses, commercial impact.
- Managing accounts payable: Negotiating payment terms and methods, reverse factoring.
How to reduce the first two and increase the third over three accounting years.