Cash Management

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

Target Audience
 Nonfinancial managers at all levels

Expected Duration
2.5 hours

Lesson Objectives:

Managing Cash Flows

  • recognize the value of maintaining optimal cash levels in an organization.
  • identify the functions of cash management.
  • categorize current accounts as current assets or current liabilities.
  • identify adverse effects of too much leverage.

    • Maximizing Cash Generation

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

    • Delaying Payments and Investing Idle Cash

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

    • Cost Reduction Programs

  • recognize the value of cost reduction programs.
  • 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 center budgets and profit center budgets with the appropriate characteristics.

    • Course Number: FIN0143