Operation a Cash Management and Credit Control System
Operation a Cash Management and Credit Control System
OBJECTIVES
- Ensure cash receipts and payments are monitored and controlled against budgeted cash flow.
- Likely pattern of cash flows over the accounting period and to anticipate any exceptional receipts or payments.
- Forecasts of future cash payments and receipts are in accordance with known income and expenditure trends.
- Cash budgets preparation in the approved format and clearly indicate net cash requirements.
- Significant deviations from the cash budget are identified and corrective action is taken within defined organizational policies.
WHO SHOULD ATTEND?
- Members of the treasury departments of companies within the oil and gas, petrochemical, and other industries who have responsibilities for managing cash flow and working capital
- Business professionals, strategic and business development planners, and project professionals who wish to refresh their understanding and enhance their skills in managing and improving cash flow and working capital performance
- Personnel employed in the banking, insurance and the general financial services sector where the management of cash is of prime importance
- Any operational, engineering, commercial, marketing, technical, or financial personnel whose work impacts on cash flow or working capital, and who wish to develop their expertise in these areas to support their current roles or for career development.
COURSE OUTLINE
- Manage and forecast cash flows
- Understanding cash flow analysis
- Pattern of cash flows over the accounting period
- How to anticipate exceptional receipts or payments.
- Forecasts of future cash payments and receipts in accordance with known income and expenditure trends.
- Monitor and control cash receipts and payments against budgeted cash flow
- Internal controls for cash receipt and revenue
- Cash receipts basic principle: no one person should be allowed to collect, handle or transport and deposit checks/currency without some additional control feature to ensure that all funds are accounted for
- Use of accounts receivable account to process billing and collection efforts.
- The opening of any bank account requires proper approval.
- Reasons for creating a cash flow budget (improving receivables, managing payables, surviving shortfalls)
- Cash budgets preparation
- Net cash flow the difference between a company’s cash inflows and outflows and the change in a company’s cash balance as detailed on its cash flow statement in a given period
- How to create a complete cash budget?
- How a cash budget relates to a cash flow statement
- Differences between sales budget & cash receipt schedules
- Deviations from the cash budget are identified and corrective action is taken within defined organizational policies.
- Description of the four sections of a cash budget
- The advantages of preparing a monthly cash budget
- Importance of cash flow accounting
- Cash flow is not profitability
- Cash flow statement in details
- How the company obtains and spends cash
- Why there may be differences between net income and cash flows
- Generates enough cash from operation to sustain the business and pay off existing debts and take advantage of new investment opportunities