Fundamentals
Target audience
- Profit Center Manager
- Treasurers
2 day
New training
Training in Cash Management Fundamentals
Prerequisites
No prior knowledge is required.
Objectives
◗ Implement the techniques and key strategies for managing and improving cash flow on a day-to-day basis.
◗ Develop a balanced cash flow budget.
◗ Make effective choices among different investments, and balance borrowing against investing and returns against safety.
◗ Anticipate cash flow difficulties resulting from a decline in revenue or margins, or late payments from certain customers.
◗ Manage cash flow and working capital using appropriate metrics and forecasting tools.
Training program
◗ Challenges in Cash Management
– Role of the Cash Manager
• The Cash Manager’s Day-to-Day Responsibilities
• The Concepts of “Cash Pooling” and “Anchor Bank”
– Cash-Related Items on the Balance Sheet
– Managing Intercompany Accounts in Group Structures
– Determining the Ideal Cash Position
✔ EVALUATE | Cash Management Quiz
◗ Design a cash flow statement as a tool for monitoring and risk prevention
– Methodology and principles of rolling forecasts
– Data collection
– Cash flow management techniques: payment deferrals, early payment discounts
– Transition from a short-term cash flow plan to a medium-term cash flow plan
– Developing cash flow scenarios (base, optimistic, stress)
✔ APPLY | Case study based on a cash flow statement
◗ Techniques for managing short-term cash flow
– Discounting and the Dailly Act, “discount vs. overdraft” trade-off
– Factoring, documentary credit, credit insurance, spot credit
– Managing value dates
– Overdraft facilities, seasonal credit
– Managing fixed-rate and floating-rate pricing as well as forward contracts
– Day-to-day cash management: balancing errors, over- and under-funding
✔ APPLY | Practical exercise: managing short-term cash flow
◗ Negotiating bank fees and rates
– Actions related to the margin added to the base rate
– Actions related to value dates and service fees
– Review of bank billing
• value dates, transaction fees, etc.
• calculation of interest and the Annual Percentage Rate (APR)
◗ Investment of Temporary Cash Surpluses
– Money market funds, commercial paper, certificates of deposit
– Term accounts, savings certificates…
– Balancing borrowing and investing, and security versus returns
◗ Managing Working Capital Requirements (WCR)
– How to Calculate Operating and Non-Operating Working Capital Requirements
– Leverage Points for Cash Flow Optimization
– The Importance of Monitoring Supplier Credit to Mitigate Default Risks: The Concept of a Credit Score
– Seven Techniques for Managing Accounts Receivable and the Standards of the Economic Modernization Act (LME)
– Financial dashboard for monitoring “operating” components
– Monitoring standard working capital requirements and changes in working capital during the development phase
✔ APPLY | Business case study
Why choose this course?
Well-managed cash flow is a key driver of performance and financial security.
This training course helps participants forecast cash inflows and outflows, optimize working capital requirements, make investment decisions, and master the operational tools for short-term cash management.
Teaching and assessment methods
Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.
Teaching Methods: A variety of teaching methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.
Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.
During the training: theoretical concepts are alternated with examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.
Training monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.
Price
€1,630 (excluding tax)