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Course Outline
Day 1: Cash Management Essentials and Daily Positioning
- Introduction to corporate cash management principles
- Defining roles and responsibilities in cash management
- Interconnections between treasury, finance, accounting, procurement, and operations
- Distinguishing profit, cash flow, and liquidity
- Analyzing cash inflows, outflows, and liquidity
- Foundations of the cash conversion cycle
- Examining operating, investing, and financing cash flows
- Analysis of bank balances and available cash
- Techniques for daily cash positioning
- Addressing challenges in cash visibility
- Preparing daily liquidity reports
- Hands-on exercise: Drafting daily cash positions
Day 2: Cash-Flow Projections and Liquidity Strategy
- Core concepts of cash-flow forecasting
- Direct versus indirect forecasting methodologies
- Defining forecast horizons and planning intervals
- Implementing rolling forecasts for liquidity planning
- Projecting customer receipts and operational expenses
- Forecasting debt repayments and capital expenditure
- Managing uncertainty in projections
- Scenario planning and sensitivity testing
- Analyzing forecast variances
- Enhancing forecast accuracy and governance
- Practical exercise: Creating a 13-week cash-flow forecast
- Workshop on forecast variance analysis
Day 3: Working Capital and Internal Cash Optimization
- Basics of working capital management
- Optimizing receivables, payables, and inventory
- Metrics for Days Sales Outstanding (DSO)
- Metrics for Days Payable Outstanding (DPO)
- Calculating Inventory Holding Days
- Deep dive into Cash Conversion Cycle analysis
- Improving collection and invoicing processes
- Strategies for managing overdue receivables
- Developing supplier payment strategies
- Evaluating early payment discounts
- Techniques for inventory optimization
- Driving cross-functional working capital initiatives
- Practical exercise in working capital analysis
- Group activity: Formulating improvement plans
Day 4: Banking, Payments, Funding, and Cash Concentration
- Managing corporate bank accounts
- Strategies for bank relationship management
- Reviewing bank fees and service levels
- Domestic and international payment methodologies
- Controls for payment approval and authorization
- Preventing fraud and ensuring payment security
- Implementing segregation of duties and internal controls
- Structures for cash concentration and pooling
- Mechanisms for zero and target balancing
- Arrangements for intercompany funding
- Exploring short-term funding options
- Overdrafts, revolving credit facilities, and loans
- Short-term investments and deposit strategies
- Practical exercise in comparing funding options
- Case study on preventing payment fraud
Day 5: Cash Risk, Reporting, Technology, and Continuous Improvement
- Managing liquidity and funding risks
- Assessing counterparty and banking risks
- Mitigating operational and payment risks
- Addressing interest rate and foreign exchange exposures
- Treasury technology and cash management platforms
- Utilizing bank portals and treasury management systems
- Automating reconciliation and reporting processes
- Developing cash management dashboards and KPIs
- Establishing policies and governance frameworks
- Preparing management and liquidity reports
- Integrated case study on cash management
- Planning for cash management enhancements
- Final assessment and participant presentations
Requirements
It is recommended that participants possess the following:
- A foundational understanding of finance, accounting, or treasury operations.
- Acquaintance with financial statements and core cash flow concepts.
- Prior experience in finance, accounting, treasury, budgeting, or related commercial roles is advantageous but not required.
- Basic proficiency in spreadsheets for forecasting and analytical exercises.
35 Hours
Testimonials (2)
Fun to talk
Jihan Fadila - BAF
Course - Root Cause Analysis (RCA) for Internal Audit
Very practical. Trainer was very flexible in ensuring we meet our needs.