Optimize Cash Flow: Working Capital & Debtors Management

Course Description

This intensive 5-day course provides a comprehensive understanding of working capital management and debtor control strategies. Participants will learn to optimize cash flow, manage inventory efficiently, and implement effective credit policies. The course covers both theoretical concepts and practical applications, equipping finance professionals with the tools to enhance their organization's financial stability and performance.

Learning Objectives

• Understand the components of working capital and their impact on business operations
• Develop strategies to optimize cash conversion cycles and improve liquidity
• Master techniques for effective inventory management and cost reduction
• Implement robust credit policies and efficient accounts receivable processes
• Analyze financial metrics to make informed working capital decisions

Course Modules

Day 1: Introduction to Working Capital Management

• Working capital concepts and importance
• Components of working capital
• Working capital ratios and analysis
• Cash conversion cycle optimization

Day 2: Cash and Liquidity Management

• Cash flow forecasting techniques
• Short-term investment strategies
• Banking relationships and cash management services
• Working capital financing options

Day 3: Inventory Management

• Inventory valuation methods
• Economic Order Quantity (EOQ) model
• Just-in-Time (JIT) inventory systems
• Inventory turnover optimization

Day 4: Accounts Receivable and Credit Management

• Credit policy development
• Customer credit assessment techniques
• Accounts receivable aging analysis
• Collection strategies and dispute resolution

Day 5: Working Capital Performance Measurement and Technology

• Key Performance Indicators (KPIs) for working capital
• Working capital benchmarking
• Technology solutions for working capital management
• Case studies and practical applications

Practical Wins for Participants

• Ability to reduce working capital requirements by 10-15% through optimized processes
• Skills to implement credit policies that balance sales growth and risk management
• Techniques to improve inventory turnover and reduce carrying costs by 20-30%
• Strategies to accelerate cash conversion cycle by 5-7 days, enhancing liquidity