Managing the Cash Cycle – Accounts Receivable and Payable Best Practices

Courses Syllabus

Introduction

The importance of cash cycle coming from fact that moving cash generating profit , so as much as you improve the cash cycle , as much as get more profit. Accounts receivable and payables best practices playing main rule in improving cash cycle. 

By attending this training course, delegates will understand:

• Financial position , Financial performance and cash flow statement
• The deferent between Cash flow and net profit
• What is IFRS and IAS historical and future?
• Revenues recognition and accounts receivables best practices
• Pricing methods ,  market types and product life cycle
• Source of short term finance and capital structure.
• Cash flow and working capital management using latest technology.
• How to improve Cash cycle and operation cycle using best practices.
• Accounts payable best practices, payment methods, using technology and communication.
• How to improve Inventory and supply chain management using best practices.

Objectives

• Enhance the understanding of accounting environment, kay financial statement and IFRS.
•  Identify the accounts receivables best practices and improve credit terms management.
• Identify inventory and supply chain management best practices.
• Identify accounts payable management best practices.
• Improve cash and working capital management skills using latest technology and best tools.
• Enhance the understanding of the cash cycle and cash cycle management.

The Contents

Day One

Accounting Environment

• Accounting as a source of information
• Accounting terminology
• Financial Positon and financial performance
• Cash flow VS net Profit
• Preparing , presenting and understanding  cash flow statement
• IFRS and IAS Overview   

Day Two

Accounts Receivables Overview

• Defining best practices in AR
• Revenues recognition as per IAS 18 and IFRS 15
• Accounts receivables Process .
• Accounts receivables presentation and provision for doubtful debts.
• Cost of credit
• Credit terms of trading
• Effective customers service and customer satisfaction

Day Three

 Pricing Decision ,Product Life Cycle And Market Types

• General Pricing approaches
• Product Life Cycle and Pricing Decisions
• Market types
• Price elasticity of Demand
• Exchange rate risk
• Credit risk management
• Assisting the impact of a change in credit terms

Day Four

Short Term Source Of Finance And Capital Structure 

• Factoring receivables
• Trade credit
• Short Term bank Loans
• Secured Financing 
• Other types of working capital finance
• Capital structure management and limitations

Day Five

Cash Management 

• The Importance of cash and cash flow
• Optimal Cash balance
• Speeding up cash collection (Collection tools and techniques )
• Slowing Cash Payments 
• EOQ applied to cash management
• Forecasting future cash flow
• Cash ratios analyses

Day Six

Working Capital Management

•  Account receivables turnover
• Inventory turnover 
• Account Payables turnover 
• Cash cycle and operating cycle
• Marketable securities management
• Working capital ratios

Day Seven

 Accounts Payables Overview

• Account payables definition and presentation
• Define best practices in AP
• Moving beyond P2P
• End to end AP Process
• Handling invoices
• Defining the issues in AP
• Managing Risks

Day Eight  

Inventory And Supply Chain Management

• Economic order quantity ( EOQ )
• Just – in- Time (JIT) and Kanban inventory system
• Distribution network system
• Logistics excellence
• Customer service management
• Achieving organizational excellence in warehouse operation
• Auto ID system 
• Electronica data integration     

Day Nine  

 Technology

• Accounts payable and receivables work flow
• Master vendor file management
• Electronic invoice  
• Using the Internal for AP effectiveness
• How to avoid duplicate payment
• Reporting forms  

Day Ten  

 Payments and Communication

• Letter of Credit ( LC )
• Cash against documents 
•  Cheque
• Procurement cards
• Payments status information to vendor
•  Communication with internal customers