Effective Cash Flow Management

Course details

PROGRAMME OUTLINE

1. INTRODUCTION TO FINANCIAL STATEMENTS

• The link between the three financial statements – balance sheet, profit and loss account and cash statement
• Structure of Cash Flow Statement – operating activities, investing activities and financing activities

2. MYTH OF “PROFIT” – I MADE PROFIT, BUT WHERE IS THE CASH?

• Definition of profits
• Subjective judgments influencing the profit figures - provisions & accruals
• Reconciling between the profits and cash flow figures

3. PREPARING CASH FLOW STATEMENT

• Cash flow from operating activities – direct method vs indirect method
• Cash flow from investing & financing activities

4. CASH FLOW BUDGETING

• Planning and developing an annual budget
• Forecasting and Projection of future activities – operating, investing and financing
• Preparing operating activity budgets
• Preparing cash flow budget

5. CASH FLOWSTATEMENT ANALYSIS

• Using the published financial statements of listed companies, this session demonstrates and interprets
• the financial and operating performance of these enterprises in terms of Liquidity, Solvency, Profitability, Financing, Investing.

6. CASH FLOW STRATEGIES FOR YOUR BUSINESS

• Risk consideration in cash flow management
• Factors to be considered when designing an effective cash flow system

PROGRAMME OBJECTIVES

Whether it is a new business or an existing one, cash flow management will always be a significant component contributing to the success of an enterprise’s operation. Therefore, this course is designed to discuss the main features of cash flow statement, the techniques and methods to develop cash flow budgeting, and interpret the performance of an organisation using the cash flow statements.

This one-day seminar also highlights the important considerations when performing cash flow budgeting and interpretation of cashflow statement.