Consult our trainings :
Practical aspects of cash management Training
- Participants / Prerequisite
Learn how to draw up annual cash flow forecasts and so that they can be used as a powerful simulation tool. Be able to draw up reliable cash forecasts. Make cash more sustainable through actions to manage the WCR and anticipate customer defaults.
- Identify the sources of financial and accounting information required for the cash flow forecast
- Assess the cash position of your company through analysis of the various ratios
- Draw up a cash flow forecast budget
- Protect cash flow by checking the creditworthiness of your customers
- Optimize your WCR (Working Capital Requirement)
- Presentation and reading of the balance sheet: a snapshot of the assets of the company at a given point in time.
- The various items on the assets side of the balance sheet: fixed assets, receivables, amortizations, inventories, etc.
- The various items on the liabilities side of the balance sheet: equity capital, provisions, borrowings, debts, etc.
- The profit and loss account: the measurement of the economic activity of a company over a financial year.
- The components of the profit and loss account: revenues and operating, financial and exceptional costs.
- The notes to the financial statements: the explanations for variations from one financial year to the next.
- Understanding the operating cycle.
- Understanding the laws of cash receipts and payments.
- Developing investment and financing budgets in the medium and long term.
- Understanding the concept of normative Working Capital Requirement (WCR).
Hands-on work Calculation of a normative Operational Working Capital Requirement (OWCR).
- Carrying out a static analysis based on the balance sheet: the rule of financial balances.
- Analyzing the operating balances: determining the Working Capital Requirement (WCR).
- Using cash flow statements.
- Analyzing the situation from the profit and loss account: understanding and respecting the rule of optimization of margins.
- Determining the company’s capacity for self-financing.
- Understanding the various traditional reasons why the annual cash flow forecast can be unreliable.
Case study Analyze the top and bottom of the balance sheet. Present an operational balance. Calculate a Working Capital Requirement, assess the cash flow position of a company and analyze its ratios.
- Constructing the budget: the terminology and the concept of budget management.
- Understanding the importance of cash flow modeling.
- Drawing up a cash flow plan.
- Making the necessary adjustments on the basic accounting data.
- Developing and articulating the various budgets: sales, production, procurement, general services, etc.
- Implementing a budget check: (variations in costs and sales).
- Putting corrective actions in place.
Hands-on work Draw up a cash flow forecast and analyze it. Calculate differences on the Turnover and expenses.
- Understanding the importance of setting up a customer monitoring system.
- Analyzing the solvency and profitability of customers: structural, liquidity, management and business activity ratios, etc.
- Securing the processing of your receivables into cash.
- Spotting the warning signs before a customer default.
- Understanding the legislation designed to prevent companies getting into difficulties (the seven stages of the law of 26/07/2005).
- Focus: reminder of the Law of Modernization of the Economy (LME) of 04/08/2008 on the new decrease in customer credit.
Hands-on work Calculate and analyze structural and liquidity ratios and other indicators of customer solvency.
- Defining the financial balance of the company (WCR / Overall Net Working Capital (ONWC) / net cash).
- Understanding the actions to be implemented to improve the cash flow.
- Understanding the actions to be implemented to improve the company’s margins.
- Optimizing your Working Capital Requirement: Cash culture
- Optimizing average settlement timescales.
Hands-on work Optimizing your company’s Working Capital Requirement, reducing customer settlement timescales.