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Cashflow Modelling

Relevant to all

In the current climate, no business can afford to take its eye off cash flow forecasting. Turbulent stock markets, varying exchange rates and the lasting effects of the Global Financial Crisis are just some of the factors affecting the cash position of today’s organisations, profit making or otherwise. 

Greater granularity

With profits on the rise for some and overstretched cash positions affecting others, more and more companies are modelling their cash flows on a weekly basis, enabling more accurate forecasting and more effective management of their working capital and debt structuring. However, shortened periodicities have a hidden impact on modelling logic. Modelling assumptions for debtors, creditors, inventory, GST and corporate taxation, that seem perfectly reasonable for longer time frames, may be inappropriate or downright wrong when constructed on a weekly basis. This course provides a valuable eye opener to all those seeking to build weekly cashflow forecasting models.

Key benefits

  • Learn how to construct working capital forecasts for weekly analysis
  • Incorporate Goods & Services Tax (GST) into financial statements
  • Understand the impact of different approaches to inventory management.

Programme outline

  • The differences between weekly and monthly modelling
  • Seeing up timing flags intelligently
  • The problems with modelling debtors and creditors
  • Bad debt considerations
  • Inventory management modelling
  • Modelling GST in a financial model; and why it is usually ignored
  • Debt covenant analysis
  • How corporation taxation changes for shortened period modelling
  • Issues associated with quarterly and financial year reporting
  • “What-if?” analysis
  • Actual versus budget reporting.

Who should attend

This course is aimed at finance professionals charged with cashflow forecasting for shortened periodicities, typically weekly. Corporate recovery and management accountants may find this course particularly useful.