Budgeting and Cash Flow Management

OVERVIEW Like it or not, financial planning and cash flow are essential to business accounts. Understand how cash flow forecasts and budgets are created and how to use them to manage your business in Budgeting and Cash Flow Management. You’ll learn techniques for better budgeting, how to align budgets with goals and business strategy, how to build an accurate forecast and how to better manage the cash-conversion cycle. BENEFIT

• Confidently distinguish between budgets and forecasts
• Readily compare budgets with forecast and actual results
• Understand the impact of budgets on organisational performance
• Understand the difference between cash and accrual accounting
• Have learned techniques for creating accurate cash flow forecasts
• Have looked at the components used for managing the cash conversion cycle
• Understand budget and forecast alignment

OUTLINE MATERI 1. Introduction to Budgeting

• Budgets vs Forecasts
• Sources of Information
• Budgeting Tools
• Budget Formats and Layouts

2. Techniques For Better Budgeting

• Incremental vs Zero Based Budgets
• Fantasy Factor-Identify Unrealistic Targets
• Budget Comparison with Forecast and Actual Results
• Variance Analysis

3. Impact of Budgets on The Organization

• Budget Targets
• Motivating and de-Motivating Factors
• Budget-Aligned Incentive Programs
• Alignment with Goals and Strategies

4. Introduction to Cash Flow

• Cash vs Accrual Accounting
• Elements of a Cash Flow Statement
• Confirm Forecast Period
• Formats and Layouts

5. Building Accurate Cash Flow Forecasts

1. Revenue and Expenditure Patterns
2. Impact of Capex and Investment Activities
3. Confirm Acceptable Debt Level

6. Managing The Cash Conversion Cycle

• Receivable Collection Terms
• Payable Credit Terms
• Inventory Optimisation
• Exchange Rate Management

7. Aligning Budgets and Cash Forecasts

• Use of Budgets as a Start Point
• Ensuring that Cash Flow Forecasts Align with Budgets
• Use of Rolling Forecasts

TRAINING METHOD Presentation Discussion Case Study Evaluation FACILITY Training Kit Handout Certificate Lunch + 2x Coffee Break Souvenir Pick Up Participant (Yogyakarta)