Cash Management Training Course (2024)

In three days, you can begin to master the art of managing working capital with our Cash Management Training Course. Our expert instructors will guide you through the process, giving you the confidence to handle any situation that comes your way.By the end of the course, you’ll have the knowledge and skills you need to improve liquidity and reduce risk for your organization.

Don’t miss out on this valuable opportunity to enhance your expertise and make a real impact in your profession. Join us today and take your first step toward financial success!

• Receive training from a management professional with 30+ years of experience.
• Four ways to learn:public class,webinar,self-study,oron-sitetraining.
• Public classand webinarlimited to four students for maximum learning.
• Certificate issued on completion.
• Cost: Three-day class $2,295.00.
• Available discounts and grants.

In the Cash Management Training Course, you will learn best practices to manage your firm’s working capital (cash available for day-to-day operations) to improve the firm’s liquidity position, financial health, and reduce risk to allow management to take advantage of unexpected opportunities and to qualify for bank loans and favorable trade credit terms.

Introduction to Cash Management

In Module One, you will learn cash management involves optimizing current assets and liabilities to ensure the firm has suffi­cient liquidity. Optimization also includes releasing trapped cash from the cash components. Subsequently, cash management is one of the primary responsibilities of treasury professionals.

Cash management is influenced by the firm’s daily operating activities, which consist of ordering and paying for goods and services and making and collecting on sales. These operating activities create various cash accounts (e.g., inventory, accounts payable, and accounts receivable), impacting cash flows and liquidity.

The ebb and flow of this operating cycle result in the cash conversion cycle.

The aspects of cash management examined in this module include:

• Operating cash flows
• The concept of float
• The cash conversion cycle
• Cash investment and financing strategies
• Management of accounts receivable (A/R), inventory, and accounts payable (A/P)

Cash Metrics

Module One: Introduction to WorkingCapital Management

• Overview of Working Capital
• The Working Capital Cash Conversion Cycle (CCC)
• How Changes in Current Accounts Impact External Financing
• Working Capital Investment and Financing Strategies
• Management of Credit and Accounts Receivable (A/R)
• Management of Inventory
• Management of Accounts Payable (A/P)
• Multi-National Working Capital Management Tools

Module Two: Working Capital Metrics

• Basic Financial Concepts
• Working Capital Metrics
• Cash Conversion Cycle (CCC)
• Cash Discount Calculations
• Accounts Receivable (A/R)
• Monitoring and Control
• Collections and Concentrations Calculations

Module Three: Collections, Concentration, and Disbursem*nts

• Disbursem*nts
• Collections
• Concentration of Funds
• Payments Fraud

Module Four: Short-Term Investing and Borrowing

• Managing Short-TermInvestments
• Pricing and Yields on Short-Term Investments

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• Wed., Thurs., and Fri., January 17 – 19, 2024 Full
• Wed., Thurs., and Fri., February 7 – 9, 2024 Full
• Wed., Thurs., and Fri., February 14 – 16, 2024 Full
• Wed., Thurs., and Fri., February 21 – 23, 2024
• Wed., Thurs., and Fri., March 6 – 8, 2024 Full
• Wed., Thurs., and Fri.,April 3 – 5, 2024
• Wed., Thurs., and Fri., May 1 – 3, 2024
• Wed., Thurs., and Fri., June 5 – 7, 2024

Cash management refers to the firm’s use of current assets and current liabilities. In Module Two, you will learn cash man­agement is important as it impacts a firm’s liquidity, efficiency, and overall health. This module discusses several key metrics that provide treasury professionals with the tools needed to assess cash management practices’ effectiveness.

The cash metrics described in this module allow the user to determine the:

• Composition of current assets relative to current liabilities
• Dependence on short-term and long-term financing for funding current assets
• Length of time that funds are held in operating cash
• Appropriate payment decisions when offered a trade credit discount
• Financial impact of extending a discount to customers
• Proportion of accounts receivable (AIR) that are past due

Specific metrics covered include the current ratio, quick ratio, cash conversion cycle, and cash turnover. Although a general discussion of the cash conversion cycle is presented in the previous module, the current module provides a more detailed discussion of the associated calculations. The module closes by examining specific calculations that are helpful when managing the use of trade credit financing.

Disbursem*nts, Collections, and Concentration

Disbursem*nts, collections, and concentration refer to the movement of funds throughout the various cash accounts. Subsequently, these aspects represent the primary types of cash management services offered by banks to their customers. It is important to note that a given firm’s disbursem*nt of cash represents another firm’s cash collection. As a result, many of the same banking services and products are relevant to disbursem*nts and collections. Concentration refers to funds’ movement throughout the firm’s various accounts following cash collection into one centralized account.

Module Three opens with a discussion of products and services commonly used by treasury professionals to disburse funds. The disbursem*nts section also describes tools used to deter payments fraud. Next, the module describes key aspects related to collections, including lockboxes and international collection issues. The module closes with a discussion of cash concentration, including the concepts of notional and physical pooling.

Short Term Investing and Borrowing

The previous module described the importance of the collections, concentration, and disbursem*nt policies in allowing the treasury department to determine the firm’s current liquidity position. Once the liquidity position is known, treasury personnel can determine whether the firm has either excess cash available or a cash deficit.

Module Four begins with key issues related to short-term investing. Since the short-term investment portfolio consists of excess cash the firm may require for future liquidity management purposes, most treasury professionals focus on preserving principal instead of seeking higher yields by taking on more risk. For this reason, the vast majority of the short-term investment portfolio will consist of money market securities with a maturity of one year or less.

Next, the module describes pertinent short-term borrowing topics, which may be required when the firm has a cash deficit. Specifically, the characteristics of several short-term borrowing instruments are covered, as well as the calculations involved in determining the effective borrowing cost for lines of credit and commercial paper. The module closes with a discussion of credit ratings and the agencies that provide them.

Cash Flow Forecasting

The goal of cash flow forecasting is to optimize future cash resources. In Module Five, you will learn cash flow forecasting assists a treasury professional in planning cash management activities. These activities include scheduling cash concentration transfers, funding disbursem*nt accounts, making short-term investing and borrowing decisions, managing target balances for bank compensation purposes, managing covenant restrictions, and abiding by regulatory requirements. Despite its importance, cash flow forecasting remains an inexact science, primarily because of forecast cash assumptions. For this reason, the assumptions underlying the cash forecast should be reviewed and updated frequently with the most current and complete information available.

Cash forecasts are different from the broader financial models that are often used for financial planning and analysis. Cash forecasts are more concerned with cash flow projections than accounting state­ments that must comply with US GAAP (US Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards) requirements.

Cash flow forecasting requires a treasury professional to take four essential steps:

• Establish assumptions.
• Estimate future cash inflows and outflows.
• Generate a pro forma cash position.
• Identify how to finance cash deficits or invest cash surpluses. The shortfall or surplus is measured relative to the predetermined, minimum desired target cash balance.

This module describes the benefits of cash flow forecasting and the types of forecasts commonly performed by the treasury function. Next, the module provides an overview of the forecasting process and introduces some of the principal cash flow forecasting methods. The module concludes with a discussion of best practices in treasury forecasting.

Technology of Treasury

The treasury function manages its diverse responsibilities using various forms of technology. While many treasury professionals still rely on spreadsheets and personal computers, the available technology has grown to include:

• treasury management systems (TMSs),
• bank-specific workstations,
• cloud-based systems,
• company-wide enterprise resource planning (ERP) systems,
• and e-commerce.

The use of technology allows treasury professionals to retrieve, review, analyze, and transmit large amounts of financial data promptly while minimizing the potential for operational and financial errors. Further, tech­nology provides a standardized way to interact with various internal and external entities, including the account­ing, payables, receivables, corporate finance units, and financial institutions. Technology also helps facili­tate visibility in treasury operations and allows organizations to leverage external capabilities, such as SWIFT, market-rate providers, and online portals. Reliance on technology does, however, require an increased level of at­tention to controls and security to safeguard against intrusion and fraud.

Module Six introduces some of the basics of information management and technology as they apply to treasury, including a discussion of security, treasury applications, technology platforms, and information technology poli­cies. Next, the module provides a detailed look at TMS functionality and cost. The module concludes with an overview of some of the issues associated with e-commerce and mobile or electronic banking, including a discus­sion of common information standards important to treasury.