Effectively Managing & Organizing Accounts Payable
Effectively Managing & Organizing Accounts Payable
OBJECTIVES
- Work effectively with the fundamentals of accounts payable, financial accounting, and the supply chain
- Appreciate the processes and procedures involved in the evaluation of suppliers
- Understand and apply the fundamentals of accounts payable systems
- Review and comment on payment methods and cash management
- Analyze the need to incorporate risk and uncertainty into accounts payable analysis
WHO SHOULD ATTEND?
- This program provides a user-friendly environment to develop the knowledge and techniques related to accounts payable
- You may be pursuing and developing a career in accounting, purchasing, warehousing and distribution, or stock control
- Or you may already be employed as a supervisor, team leader, manager, senior manager/director, or vice-president in any of these functions within the business
- The benefits of this program may be gained by anyone employed within these roles in any organization
COURSE OUTLINE
DAY 1 – Accounts payable, financial accounting and the supply chain
The Accounting environment
- Accounting and financial information
- Accounting terminology
- Sources of finance
- The supply chain
- Financial position and financial performance
- The structure of the profit and loss account (Statement of Comprehensive Income)
- What does the Statement of Comprehensive Income tell us about a company?
- The structure of the balance sheet (Statement of Financial position)
- What does the Statement of Financial position tell us about a company?
- Cash flow and DCF
- Why is cash flow so important?
- The structure of the statement of cash flows
- Capital and revenue expenditure
- Capital expenditure and discounted cash flow (DCF)
DAY 2 – Evaluation of suppliers Suppliers and trading terms
- Suppliers, products, and prices
- Supplier choice
- Terms of trading
- Supplier credit analysis
- Business ratio analysis
- Finding and using data and information
- Tools and techniques of financial analysis: ratios; trends; common size analysis
- The use of financial ratios: profitability ratios; efficiency ratios: liquidity ratios; investment ratios; financial ratios; the DuPont system
- The best performance measure – cash or profit?
- Financial distress and the Altman’s Z score-type analyses
- Trend analysis
- Common size (or horizontal) trend analysis of financial statements
- Vertical trend analysis of financial statements
- Segmental analysis of financial statements
- Value added analysis of financial statement
DAY 3 – Accounts payable systems Purchase Order Processing (POP)
- The acquisition/payment process
- Purchase requisition
- Purchase authorization
- Purchase order
- Stock (inventory) control
- Goods received
- Returned goods
- Physical stock control
- Links with the general ledger
- Accounts payable (AP)
- Invoice registration
- Invoice matching
- Invoice payment
- AP links with the general ledger (GL)
DAY 4 – Payment methods and cash management
Methods of Payment
- The payment process
- Traditional payment methods
- Electronic funds transfer (EFT)
- International payments
Working Capital and Cash Management
- Working capital and the working capital requirement
- Managing working capital
- Cash improvement techniques
- Cash management and the bank facility (line of credit)
Leasing versus Borrowing to Buy
- Why lease?
- Operating leases
- Financial leases
- Lease evaluation
DAY 5 – Risk and uncertainty
Risk Analysis
- Analyzing risk: expected values; value of perfect information (VOPI); standard deviation
- Risk and uncertainty decision rules
- Scenario, sensitivity, and break-even analysis techniques
- Types of risk
Risk Management
- Risk management principles
- Talking to your bankers about managing risk
- The analytical tools to manage risk
- How to develop the tools for your company
- How to minimize risk: insurance and hedging
Location: Guangzhou – Shanghai
Date: 22 – 26April 2024