Cash Management


Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number


Overview/Description
Can a profitable organisation with a positive net worth have a liquidity crisis? Without sound cash management, it not only can, but probably will. Every organisation, large and small, must manage the generation and expenditure of cash to ensure that invoices can be paid on time. This course will provide non-financial managers with a grounding in cash management issues and practices. It will provide a foundation for appreciating and supporting cost reduction programmes and other efforts to maintain appropriate levels of working capital.

Target Audience
Non-financial managers at all levels

Expected Duration (hours)
2.5

Lesson Objectives

Managing Cash Flow

  • recognise the value of maintaining optimal cash levels in an organisation.
  • identify the functions of cash management.
  • categorise current accounts as current assets or current liabilities.
  • identify adverse effects of too much gearing.

    • Maximising Cash Generation

  • recognise the importance of managing credit and cash collection for optimal cash generation.
  • select the principles of good credit policy.
  • identify techniques for accelerating cash collection.
  • select methods for reducing post-collection float.

    • Delaying Payments and Investing Idle Cash

  • recognise the benefit of delaying disbursements.
  • arrange in sequence the components of disbursement float.
  • identify techniques used to delay cash outlay.
  • calculate the available surplus, given the required data.

    • Cost Reduction Programmes

  • recognise the value of cost reduction programmes.
  • identify the keys to success in setting cost reduction objectives.
  • match each area of cost control focus with an appropriate cost reduction tactic.
  • match cost centre budgets and profit centre budgets with the appropriate characteristics.

    • Course Number:
    FIN8143