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Practical aspects of cash management Training

Hands-on course
Duration : 2 days
Ref : SOR
Price  2021 : Contact us
  • Program
  • Participants / Prerequisite
  • Intra/Tailored

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.

Learning objectives

  • 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)

Accounting refreshers for cash flow management

  • 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.

Hands-on work
Hands-on work 

Identifying the sources of information for the cash flow forecast

  • 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
Hands-on work Calculation of a normative Operational Working Capital Requirement (OWCR).

Assessing the cash position of the company

  • 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.

Hands-on work
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.

Drawing up a budget and a cash flow plan

  • 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
Hands-on work Draw up a cash flow forecast and analyze it. Calculate differences on the Turnover and expenses.

Understanding and implementing a system of “customer solvency” monitoring

  • 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
Hands-on work Calculate and analyze structural and liquidity ratios and other indicators of customer solvency.

Implementing elements to improve the Working Capital Requirement.

  • 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
Hands-on work Optimizing your company’s Working Capital Requirement, reducing customer settlement timescales.

Participants / Prerequisite

» Participants

This course is for people who are asked to create and monitor budgets as well as manage the cash reserves.

» Prerequisite

Knowledge of basic accounting mechanisms.

Contact Informations

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Time schedule

Generally, courses take place from 9:00 to 12:30 and from 14:00 to 17:30.
However, on the first day attendees are welcomed from 8:45, and there is a presentation of the session between 9:15 and 9:30.
The course itself begins at 9:30. For the 4- or 5-day hands-on courses, the sessions finish at 15:30 on the last day
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