Cash Flow and Liquidity Management for improved performance

Effective strategies for managing short term liquidity and creating long term growth

About

In today’s economic climate more than ever - Cash is still the lifeblood of any organisation.

Effective liquidity management and planning are critical elements for success in any organisation. Short term success is dependent on good reporting, effective risk mitigation procedures and pro-active management of day to day cash flows. Long term profitability and growth depend on effective cash flow planning and capital decision making.

This course has been specifically designed for managers who want to sharpen up their cash flow management skills and take steps to create long term growth and efficiency.
• Learn concrete cash management techniques that will enable you to make informed decisions and improve your organisation’s financial efficiency and cash flow.
• Keep on top of your organisation’s financial situation while increasing your own value to the organisation.

Key learning objectives
• Prepare cash flow statements using the direct and indirect methods
• Use financial ratios to analyse, manage and monitor liquidity
• Identify cash flow drivers and criteria for accurate cash flow forecasting in your organisation
• Perform a comparative analysis of your statement of cash flows
• Use cash flow modelling as a tool to improve the accuracy of your cash requirement predictions
• Apply strategies to improve returns from capital proposals
• Align cash flow forecasts with your existing budgets
• Identify your optimum forecasting period
• Take steps to maximise organisational cash flow

Through a series of practical exercises, this seminar will demonstrate the most effective techniques for managing cash flow for improved performance. It is relevant for all those involved in evaluating the cash flow position of any organisation. Specifically it should be of interest to:
• Financial Accountants
• Finance Directors
• Treasurers
• Directors
• Partners
• Senior Managers
• Commercial Managers
• Finance Managers
• Financial Analysts
• Financial Controllers
• Chief Financial Officers
• Corporate Risk Managers
• Credit Managers
• Any decision maker where cash flow is important!

Training methodology
The emphasis on this course is learning cash management techniques through practical examples. This intensive two-day seminar will combine tutorial sessions with practical examples throughout, allowing participants to gain first hand experience of effective cash management skills. All attendees will be provided with a workbook and a certificate of attendance.

Outline

Day one

Preparing a cash flow statement in line with accounting standards
• Understanding the requirements for preparing a cash flow statement
• Ensuring compliance with international financial reporting standards
• Elements of a cash flow statement:
• Operating activities
• Investing activities
• Financing activities
• Practical exercise: Participants will prepare a cash flow statement

Performing a comparative analysis of your statement of cash flows
• Gaining maximum benefit from the information that your cash flow statement provides
• Examining your operating cash flow by comparing the direct method and the indirect method
• Producing consolidated cash flow statements
• Practical exercise: Participants will prepare a consolidated cash flow statement

Performing a ratio analysis to identify cash usage patterns
• Effective methods for examining your:
• Cash flow returns
• Capital expenditure and investing
• Liquidity and solvency
• Practical exercise: Participants will perform a ratio analysis

Creating accurate cash flow forecasts
• Successfully defining the criteria for accurate cash flow forecasting
• Identifying what you will need to spend money on – examining day-to-day and week-by-week expenditure needs
• Ensuring that you are planning accurately for your company’s liquidity requirements
• Identifying your optimum forecasting period

Day two

Effectively using cash flow modelling
• Using cash flow modelling to improve the accuracy of your cash requirement predictions
• Aligning cash flow modelling with organisational cash objectives
• The importance of the time value of money
• Using discounted cash flows in your financial reporting
• Performing capital budgeting

Maximising capital budgeting
• Capital versus operating expenditure
• What are the budgetary implications of capital budgeting?
• Capital investments as strategic investment decisions
• How should you budget for capital/fixed asset investments?
• Practical exercise: Participants will apply capital budgeting techniques
• Techniques to maximise investment opportunities
• Common pitfalls of traditional techniques
• Practical exercise: Participants will apply methods to improve cash flows and investment returns

Streamlining your organisation’s cash usage
• Streamlining your organisation’s cash usage by managing the cash gap
• Ascertaining where the ‘cash gap’ is in your organisation
• Identifying the link between the cash gap and your bottom line
• Examining value added cash reporting techniques
• Using cash value added statements to increase your organisation’s ability to add cash value
• Practical exercise: Participants will analyse a set of accounts to identify opportunities for improved cash flow and profitability

Techniques to manage cash flow targets
• Techniques to manage operational cash flows
• Generating cash flow from improved balance sheet management
• Effectively dealing with exchange rate fluctuations
• Practical exercise: Participants will apply techniques to manage foreign exchange risk

Aligning cash flow forecasts with your existing budgets
• Using your budgets as a starting point for formulating cash flow forecasts
• Methods for ensuring that your cash flow forecasts are in line with your budgets
• Performing cash flow management in a zero based budget environment
• Accurately identifying unrealistic targets
• Aligning your cash flow planning with your organisation’s business strategy
• How can cost management be supported by an effective cash flow management system?

Facilitator

Kevin Lee, Director, Business Skills Training

Kevin Lee BA (Hons), Pg Dip, MBA, ACMA runs a consultancy for business skills development. He is a Chartered Management Accountant with 20 years experience of Government Agencies, Corporates and SME’s. Kevin is a member of the New Zealand Association for Training and Development, the Human Resources Institute for New Zealand and accredited as a Belbin Team Role facilitator. His post-graduate qualifications include a post-graduate diploma in business administration with distinction and an MBA in which he majored in finance.

Kevin specialises in helping managers and staff to develop practical financial skills and knowledge. He is passionate about making finance relevant, understandable and fun. He enables people to develop their business acumen and to apply financial management practices that suit their organisation’s needs and circumstances.

Kevin’s clients include: Ministry of Justice, Department of Internal Affairs, ANZ National Bank, Meridian Energy, Auckland District Health Board and Auckland City Council.

Kevin’s approach is highly practical, using only the financial theory that people need to know, and then building skills and knowledge through case studies, examples and small group work. He is able to provide “real life” advice based on his experience in CFO roles and his experience of managing major Capex projects, implementing financial systems, improving financial processes and procedures and achieving ongoing efficiency savings.

Kevin’s passion, enthusiasm and commitment result in excellent feedback from participants at all levels: Directors, General Managers, Accountants, Senior Managers, Middle Managers, Supervisors and Support Staff.

Kevin's passion, enthusiasm and commitment result in excellent feedback from participants. Feedback from past courses includes:
'Excellent facilitator who was able to successfully mix talking and teaching with active listening and responding to audience. Very perceptive about people - didn't miss a trick.'
- Maria Triandafilidis, Executive Officer, MAF

'I liked the way things were used to relate to finance, e.g. pyramid/temple /softball. Excellent course - glad I came!'
- Maria Sialava'a, Executive Assistant, AMP

'All aspects of the course were very valuable. I particularly liked the group discussions and clarification and backing up of topics by giving real examples.'
- Trisha Donovan, EA, Ministry of Health

'Everything was explained clearly and thoroughly.'
- Loree Jellick, PA, Quotable Value

'Excellent gained many tips.'
- Sharyn O' Regan, EA to CFO, Hort Research

'Thank you for a very informative course. I have enjoyed it immensely and do like your teaching style.'
- Dawn Varga, PA, ANZ Business Banking

'I appreciated the clear descriptions of accounting terms and practices. You have a great speaking voice. Everything was relevant - a very good overview."
- Elaine Richmond, PA, Salvation Army

'Excellent presentation by Kevin. Kept a boring topic very interesting.'
- Kerrie Chudleigh, PA/Office Systems Coordinator, NZ Fire Service

Kevin Lee is also facilitating:

In-house Training

Prices and Registration

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