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Cash Flow Management and Treasury Operations

Course Overview

Effective cash flow management and treasury operations are critical to maintaining the financial stability, liquidity, and operational efficiency of any organization. In today’s dynamic business environment, organizations must ensure they have sufficient liquidity to meet obligations, optimize working capital, and manage financial risks while maximizing the utilization of available funds.

This comprehensive course provides participants with practical knowledge and hands-on techniques to manage cash flow effectively and perform treasury operations efficiently. Participants will learn how to prepare cash flow forecasts, optimize receivables and payables, manage banking relationships, and evaluate financing and investment decisions. The course also explores liquidity management strategies, treasury controls, and financial risk management techniques through practical exercises, Excel applications, and real-life business scenarios.

Who Should Attend

  • Treasury professionals and treasury analysts
  • Finance managers and financial controllers
  • Accountants and financial analysts
  • Professionals involved in cash flow forecasting and liquidity management
  • Professionals responsible for banking relationships and working capital management
  • Business managers involved in financial planning and operational decision-making

Course Objectives

At the end of this course, participants will be able to:

  • Understand the principles and importance of cash flow management and treasury operations
  • Prepare and analyze short-term and long-term cash flow forecasts
  • Optimize working capital and improve liquidity management
  • Manage accounts receivable, accounts payable, and inventory effectively
  • Understand treasury structures, banking relationships, and cash management tools
  • Evaluate financing alternatives and short-term investment opportunities
  • Identify and manage treasury-related financial risks
  • Apply treasury controls and best practices to improve financial efficiency
  • Use Excel tools and financial techniques in cash flow forecasting and treasury reporting

Course Content

Introduction to Cash Flow Management and Treasury Operations

  • The role of treasury in organizations
  • Importance of cash flow management
  • Difference between profit and cash flow
  • Cash flow cycle in organizations
  • Relationship between treasury, accounting, and operations
  • Treasury objectives: Liquidity management. Risk management, Optimization of financial resources

Understanding Cash Flow Statements

  • Structure of the cash flow statement: Operating activities, Investing activities, Financing activities
  • Direct vs indirect methods
  • Linking the cash flow statement with Income statement and Balance sheet
  • Analyzing operating cash flow performance
  • Common cash flow challenges and warning indicators

Cash Flow Forecasting

  • Purpose and importance of cash flow forecasting
  • Types of cash flow forecasts: Daily, Weekly, Monthly, and annual forecasts
  • Forecasting cash inflows: Sales collections, Receivables timing, Financing inflows
  • Forecasting cash outflows: Payroll, Operating expenses, Supplier payments, Loan repayments
  • Short-term vs long-term forecasting
  • Building rolling cash flow forecasts
  • Improving forecast accuracy

Working Capital Management

  • Understanding working capital
  • Components of working capital: Accounts receivable, Inventory, Accounts payable
  • Working capital cycle and cash conversion cycle
  • Strategies for improving working capital efficiency
  • Managing customer collections
  • Managing supplier payment terms
  • Inventory optimization techniques
  • Measuring working capital performance using KPIs

Treasury Operations and Banking Management

  • Structure and responsibilities of treasury departments
  • Treasury policies and procedures
  • Banking relationships management
  • Bank account structures and controls
  • Cash concentration and cash pooling
  • Electronic payments and collections systems
  • Treasury management systems (TMS) overview
  • Managing bank charges and financing costs

Liquidity Management and Short-Term Financing

  • Maintaining optimal liquidity levels
  • Managing cash surpluses and shortages
  • Sources of short-term financing: Bank overdrafts, Working capital facilities, Trade finance
  • Evaluating financing alternatives
  • Investment of excess cash balances
  • Treasury investment considerations: Risk, Return, Liquidity

Treasury Risk Management

  • Overview of treasury-related risks: Liquidity risk, Interest rate risk, Foreign exchange risk, Counterparty risk
  • Introduction to hedging techniques
  • Managing foreign currency exposure
  • Interest rate management basics
  • Risk monitoring and reporting

Treasury Controls and Governance

  • Importance of treasury controls
  • Segregation of duties in treasury operations
  • Authorization and approval controls
  • Fraud prevention in treasury activities
  • Treasury compliance and audit considerations
  • Treasury policies and governance frameworks

Treasury Reporting and Performance Measurement

  • Treasury dashboards and reporting
  • Key treasury KPIs: Liquidity ratios, Cash conversion cycle. Days Sales Outstanding (DSO), Days Payable Outstanding (DPO)
  • Preparing treasury management reports
  • Communicating treasury insights to management

Practical Applications and Case Studies

  • Real-life treasury management scenarios
  • Cash flow forecasting exercises
  • Working capital improvement case studies
  • Treasury risk assessment exercises
  • Analysis of liquidity and financing decisions

Table of Contents

Course Code DU0309 Category

Language: English or Arabic

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