Managing Cash Flows

Overview/Description
 Can a profitable company with a positive net worth run short of cash? Without sound cash management, it certainly can. Every organization, large and small, must manage the generation and expenditure of cash to ensure that bills can be paid on time. This course covers the principles of sound cash flow management, including cash management strategies, the best use of credit collection, and ways to reduce overhead. With a knowledge of these strategies, managers improve their ability to maintain appropriate levels of working capital in their own organizations.

Target Audience
 Nonfinancial managers at all levels

Expected Duration
2.5 hours

Lesson Objectives:

Optimizing Cash Flows

  • recognize the benefits of optimizing cash flows.
  • match cash management strategies to examples.
  • apply the best cash management strategy to a given financial scenario.
  • select examples of techniques for prompt cash collection.
  • apply a plan using techniques for prompt cash collection from a hypothetical customer.
  • select examples of the elements associated with a sound credit policy.
  • choose the credit policy elements to be extended by a hypothetical organization.
  • match techniques used to delay cash outflow with examples.
  • apply techniques to delay cash outflow in a hypothetical cash shortage situation.

    • Reducing Costs

  • recognize the value of cost-reduction programs.
  • select examples of elements of cost reduction strategies.
  • identify areas in which costs can be reduced.
  • determine the areas in which costs can be reduced in a hypothetical business department.
  • match types of overhead costs to their corresponding examples.
  • select ways to reduce overhead costs associated with building and maintaining an inventory.
  • propose a plan to reduce overhead costs associated with building and maintaining a hypothetical inventory.

    • Course Number: FIN0153