Course Overview

What is cash management training? In today’s extremely competitive environment, the need to improve free cash flow is gaining more and more importance. In many industries, access to equity or debt capital is difficult and the need for generating funds from within is on the rise.

Besides, companies not only have to make profits but must also be able to distribute it amongst the business owners and shareholders. An efficient cash flow management is therefore inevitable for the financial health of the company.

It is almost impossible for an organisation to have an efficient cash management system without proper control over its working capital. According to a report by PWC, €1.36 trillion could be released from the balance sheets of global listed companies by improving working capital management.  This course will cover all aspects of cash management with particular emphasis on working capital management.

The ZOE course will also provide the necessary understanding of different sources and applications of funds and their utilization. This includes Capital Investments appraisal, understanding various components of Working Capital, and advantages of having an efficient Enterprise Resource Planning system.

At the end of the course, the participants will have a better understanding of the ways to optimize free cash flow, maintain a fine balance of working capital, and investment of surplus funds to increase shareholders’ value.

Course Objectives

The objectives of this Cash Management Certification Course are to ensure that the participants:

• Appreciate the importance of an effective cash management system
• Understand various sources of finance with their utilisation, based on the cost of capital
• Take sound investment decisions based on proper appraisal
• Obtain an overview of the financial statements and management reports to evaluate the company’s performance
• Understand the importance of various accounting ratios covering profitability, solvency, and liquidity
• Use financial modeling to forecast the profitability and cash flows with sensible assumptions
• Understand the different components of working capital and reduce the operating cycle
• Explore the benefits of having an efficient E.R.P. system integrating financial information with other business units
• Understand the best practice of cash management and working capital management

Training Methodology

This collaborative Cash Management Certification Course will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises

Zoe Talent Solutions follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

Companies who nominate their employees to participate in this Cash Management Certification Course can benefit the organisation in the following ways:

• Know the theory and merits of a proper cash management system
• Align the planning process with the overall strategic plan of the organisation
• Perform proper investment appraisal to optimize return on investment
• Estimate funds requirements and understand the concept of cost of capital for additional fundraising
• Ensure a reasonable balance between inflows and outflows of funds to maintain a healthy liquidity position
• Evaluate financial statements and measure own performance in comparison with the market trend
• Recognise cost behaviour for better analysis and identify areas for cost cutting
• Assess working capital requirements and reduce the operating cycle
• Maintain a fine balance between inventory, debtors, and creditors levels

Personal Benefits

Upon completion of this Cash Management Certification Course, individuals attending the course will be able to:

• Grasp key accounting concepts and applying the same for financial planning purposes
• Evaluate the capital structure, understand equity and debt capital and calculate the cost of capital
• Conduct investment appraisal and prepare sensitivity analysis
• Calculate ROI and net cash flow for capital projects
• Build an Integrated Financial Model for cash flow forecasts
• Differentiate between capital and revenue expenditure and plan accordingly
• Understanding of all components of working capital and how to optimise them
• Liaise with senior management to prepare the business’s financial and strategic plans with proper assumptions
• Evaluate financial report and understand the flow of information within the statements
• Prepare ratio analyses and report to senior management
• Create opportunities for personal development and increased financial awareness

Who Should Attend?

• CEOs, CFOs, and COOs
• Senior Executives, Members of Management Committees
• Members of the Audit Committees of the Board
• Treasury Staff
• External and Internal Auditors
• Financial / Management Accountants
• Shareholders and business owners eager to learn the fundamentals of cash flow planning and cash management

Course Outline

Module 1: Overview

• Introduction to Cash Management
• Importance of Cash Management
• Working Capital Management
• Optimizing Cash Management

Module 2: Profitability/ Liquidity/ Solvency

• Differences between Profitability/ Liquidity & Solvency
• Understanding Solvency Ratios
• Shareholder Equity Ratio
• Debt Equity Ratio
• Interest Coverage

Module 3: Cash Flow Forecast

• Importance of Cash Flow Forecast
• Establish assumptions based on Current Conditions
• Estimate Cash Inflow & Outflows
• Identify Short Term Investments
• Controlling Application of Funds
• Best Practices in Cash Management

Module 4: Cash Flow Presentation

• Reporting Non-cash Transaction
• Operating Cash Flow
• Investing Cash Flow
• Financing Cash Flow
• Lease or Buy Decisions
• Direct & Indirect Methods

Module 5: Optimising Working Capital

• Significance of Working Capital
• How to determine Efficiency of Working Capital Management?
• Best Practices in Inventory Control
• Best Practices in Receivables Control
• Best Practices in Payables Control
• Reducing Operating Cycle

Module 6: Relationship Between Financial Statements

• Balance Sheet
• Profit & Loss Account
• Cash Flow Statement
• Difference between Profits and Cash Flow

Module 7: Capital Budgeting

• Source of Funds
• Calculating Cost of Capital
• Cash Flow based approach for Investment Appraisal
• Discounted Cash Flow Techniques

Module 8: Use Enterprise Resource Planning Modules

• Sales
• Bill of Material
• Material Management
• Procurement
• Production
• Finance