The efficient management of cash flows is a critical challenge in today's corporate world, where mismanagement can lead to financial distress or missed opportunities. This course addresses the problem by presenting a robust framework for effective cash management, crucial for business sustainability. It agitates the issues businesses face due to poor cash flow forecasting, inadequate systems for cash collection, investment, and disbursement, and the lack of proper risk management strategies. The solution is provided through the course's comprehensive content, which includes techniques for forecasting cash flows, optimizing cash inflow, managing cash through various systems, fundraising, and managing risks associated with cash handling. By the end of the course, participants will be equipped with the knowledge and tools necessary to develop a comprehensive cash management system, ensuring financial stability and efficiency in their organizations.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Identify the key cash management tasks and who is responsible for them.
Chapter 2
Specify the sources and reliability of information used in cash forecasts.
Chapter 3
State the formats and uses of the bank reconciliation, as well as the types of differences that may arise.
Chapter 4
Cite the information requirements of a cash management system, and the frequency with which this information must be collected.
Specify the requirements for counterparty risk tracking.
Identify the control issues associated with a cash management system.
Chapter 5
Recognize the methods available for collecting and processing cash receipts.
Chapter 6
Specify the features of the main cash concentration systems, and the situations in which they should be used.
Chapter 7
State the characteristics of the different methods of payment, and when they should be used.
Note how positive pay and its variations can be used.
Chapter 8
Recognize the techniques that can be used to reduce the investment in working capital.
Chapter 9
Cite the more common cash investment strategies and investment instruments, and the circumstances under which they should be used.
Describe the accounting for investment transactions.
Chapter 10
Specify the types of debt funding and the major stock sale exemptions, as well as restrictions on their use.
Identify the requirements for being classified as an accredited investor.
Recognize the role of agency financing entities, such as the Ex-Im Bank.
Chapter 11
Identify the main credit rating agencies and the types of credit ratings.
Chapter 12
State the features of and differences between the different clearing and settlement systems.
Recognize the role of a correspondent bank.
Chapter 13
Identify the main aspects of foreign exchange risk and the methods available to mitigate it.
Note the impact of netting on hedging activity.
Chapter 14
Identify the main aspects of interest rate risk and the methods available to mitigate it.
Chapter 15
Cite the controls that can be used for the cash management function.
Chapter 16
Specify the ares in which cash management metrics should be employed, as well as how to calculate the key metrics.
Major Topics
Introduction to Cash Management
The Bank Reconciliation
Cash Receipts
Types of Payments
Investment Alternatives
Credit Rating Agencies
Foreign Exchange
Cash Management Controls
