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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

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