INTRODUCTION
Efficient working capital management helps maintain smooth operations and can also help to improve the company's earnings and profitability. Management of working capital includes inventory management and management of accounts receivables and accounts payables.
The main objectives of working capital management include maintaining the working capital operating cycle and ensuring its ordered operation, minimizing the cost of capital spent on the working capital, and maximizing the return on current asset investments.
Working Capital And Debtors Management training course provides a comprehensive analysis on how to manage working capital, working capital financing policies, increasing profits through working capital management and how to properly fund working capital. The course also discusses the cash conversion cycle, budgeting and credit policy.
OBJECTIVES
At the end of the Working Capital And Debtors Management course you should be able to:
understand the meaning of working capital appreciate what working capital management relates to learn about some key liquidity ratios used to understand more about a business working capital position
Distinguish between the internal working capital management function and an external interpretation of a firm s working capital position revealed by its published accounts,
Calculate the working capital operating cycle and financing cycle from published accounting data and analyse the inter-relationships between the two,
Define the dynamics of a company s credit-related funds system,
Explain how the terms of sale, which comprise the credit period, cash discount and discount period, affect the demand for a firm s goods and services,
Understand the impact of alternative credit policies on the revenues and costs, which are associated with a capital budgeting decision, Appreciate the disparities between the theory and practice of working capital management, given our normative wealth maximisation assumption.
WHO SHOULD ATTEND ?
Working Capital And Debtors Management training course, is ideal for :
Accountants involved in reporting and/or recording responsibilities for working capital accounts
Business managers who are responsible for managing the cash operating cycle
Finance professionals working in the treasury function of their organisation
Business owners who want to analyse the cash operating cycle of their companies
Anyone interested in finance or related fields.
COURSE OUTLINE
Day 1
Introduction
Importance of working capital management
Cash flow and profit relationship
Risk and return trade off
The Working Capital Cycle basics
Cash conversion cycle
Inventory
Debtors and Days Sales Outstanding
Creditors and Days Payable Outstanding
Day 2
Working Capital Optimization - theory
Economic Order Quantities
Process improvement
Working Capital Optimization basic practice
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Credit control
Stock control techniques
Debtor management & the costs of offering credit Management reporting KPI;s
Day 3
Working Capital Optimization advanced practice
Treasury procedures
Technology solutions
Payment systems
End to end cash flow management
Outsourcing of debt management
Day 4
Financing Working Capital
Supplier financing
Alternative receivables funding
The Opportunity Cost of Capital and Credit Related Funds System
The Opportunity Cost of Capital Rate
The Credit Related Fund System
The Development of Theory
Day 5
The Strategic Impact of Alternative Credit Policies on Working Capital and Company Profitability
Effective Prices and the Creditor Firm
Alternative Credit Policies, Working Capital Investment and Corporate Profitability
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