Cash and Liquidity Management

Effective cash and liquidity management is critical to maintaining financial stability and supporting strategic decision-making within any organization. This advanced course addresses the complex dynamics between accounting transactions, working capital, and cash flows. It is tailored for finance professionals seeking to enhance their ability to manage liquidity efficiently and make informed funding decisions that align with business objectives.

By the end of the course, participants will be able to:

• Analyze the impact of accounting transactions on profits and cash resources.
• Evaluate working capital components and improve their management to optimize funding.
• Assess liquidity using cash flow statements and financial ratios.
• Forecast cash flows to anticipate funding needs and plan accordingly.
• Apply best practices in managing receivables, payables, and short-term financing.

• Financial Controllers
• Corporate Accountants
• Finance Managers
• Budget and Forecasting Analysts

Module 1: Introduction to Financial Accounting

• The accounting equation and its impact on cash
• Differentiating assets and liabilities
• Profit vs. cash flow dynamics

Module 2: Working Capital Essentials

• Definition and significance of working capital
• Positive vs. negative working capital
• Impact on business funding

Module 3: Working Capital Management

• Efficiency ratios and their interpretation
• Performance monitoring techniques
• Cost-benefit analysis in working capital decisions

Module 4: Accounts Receivable Management

• Credit control and doubtful debts
• Receipts management options
• Monetizing trade receivables

Module 5: Inventory Management

• Inventory costing methods and valuation issues
• EOQ and JIT techniques
• Impact on cash forecasts

Module 6: Accounts Payable and Financing Options

• Payables as a financing tool
• Supply chain financing techniques
• Payment management

Module 7: Cash Flow Analysis

• Interpreting the cash flow statement
• Liquidity and solvency ratios
• Debt covenant implications

Module 8: Cash Management Tools and Techniques

• Types of cash investments
• Interest-bearing instruments and T-bills
• Principles of short-term investments

Module 9: Non-Current Assets and Liabilities

• Depreciation and amortization impacts
• Managing amortizing debt
• Understanding debt waterfalls

Module 10: Cash Flow Forecasting

• Differences between cash flow statement and forecast
• Identifying sources and uses of funds
• Determining minimum cash requirements

The course combines various teaching methods, including instructor-led presentations, group discussions, case study analyses, and assessments through quizzes and a final exam to engage participants and ensure they understand and retain the material.