About the Course

Budget planning and cash flow forecasting is vital part of business life. Whether you are responsible for an organisation's budgets or want to plan a proper cash flow for your project-based job, this course is the right one for you. Throughout the week, the delegate will learn how to maintain and plan a budget properly and will be able to implement the knowledge practically. You will also be able to understand how the cash flow forecast works and will be able to report to your authority.

The Beyond Budgeting approach to forecasting will be examined and suggested as a modern alternative to more traditional forecasting modelling. Freeing up both resources and valuable executive time, especially when market environments are unstable like now. This Forecasting and Analysing Cash Flow training course is designed to go behind these broad objectives to offer practical solutions. To uncover the facts and considerations that finance professionals, operational business managers, and the corporations which rely on them need to be aware of.

Core Objectives

Upon successful completion of this training course, the delegates will be able to:

• Analyse what drives and underpins the various sources of cash flow
• Support colleagues in optimising their working capital
• Recognise and utilise the appropriate forecasting and budgetary tools
• Identify leading and external risk factors and understand how they may affect company cash flow
• Grasp the relation between cash flow forecast and budget
• Create strategies to create and develop a cash flow forecast
• Assess credit risk analysis based on cash flow forecasts and not profit and EBITDA

Training Approach

This training course will be conducted face to face using a variety of live practice, theory, personal shared experience, and challenges to frame the learning, including the rear of a series of articles, aide memoirs and bullet points on the key commercial issues covered. The delegates will look at videos and, where appropriate, work in groups with real-life excel case studies to improve their knowledge of this key part of Business Finance.

The Attendees

This training course will be valuable to professionals, including (but not limited to) the following:

• Cost and Management Accountants
• Treasury Department Staff
• Managers and Budget Holders
• Procurement and Supply Chain Professionals
• Receivables and Payables Team Members

Daily Discussion

DAY ONE: THE FINANCIAL BUILDING BLOCKS OF FORECASTING AND CASH FLOW ANALYSIS

• Identifying and balancing stakeholder needs
• Financial Statements: Purpose and Structure
• How ratios can improve your understanding
• The danger of misreported cash flow
• Costs, revenue, and cash flow. Where is the profit?

DAY TWO: ANALYSING AND IMPROVING YOUR CASH FLOW

• How does the working capital cycle affect business gearing capacity?
• Cost- volume profit relationships and their uses
• Understanding gross margin, contribution analysis and break-even
• The Working Capital Cycle and its implications
• Cash Optimisation when capital restraints are in play

DAY THREE: WORKING CAPITAL MANAGEMENT & CASH FLOW FORECASTING

• Overtrading risks in companies and its impact on cash flow forecasts
• How to improve cash flow management when times are hard
• Discounts, early payments, and legal action.
• Supply Chain Finance. The advantages and disadvantages
• Effective asset utilisation in a working capital analysis

DAY FOUR: IMPORTANCE OF CASH FLOW ANALYSIS IN CORPORATE LENDING I

• Why do cash flows matter to managers and debt and equity providers?
• Why does cash flow analysis reveal more than income statement and balance sheet analysis?
• The rationale for increased cash flow-based lending, particularly for SMEs in service industries, IT, and trading companies
• The difference between cash flow and profit
• Identifying Non-cash Items
• Assessing Accruals and Funding

DAY FIVE: IMPORTANCE OF CASH FLOW ANALYSIS IN CORPORATE LENDING II

• Understanding why profitable companies can still go bust
• What are the differences?: EBITDA and Cash Flow
• What do the different categories of Cash Flow mean to corporate analysts?
• Cash flows under IFRS/IAS 7
• Why the Debt Service Cover ratio differs wildly among industries and under different risk scenarios?
• Alternative cash flow ratios that may be utilised