Cash Flow Forecasting and Management Training (Excel Applied)
'Number one, cash is king… Number two, communication… Number three, buy out or eliminate the competition…'
Jack Welch, legendary CEO of General Electric
'Never lose sight of cash flow because it is the lifeblood of the business.'
Cash flow management is the lifeblood of any business, ensuring smooth daily operations and making long-term goals achievable. Whether you're a business owner, finance professional, or someone looking to improve financial literacy, understanding cash flow is crucial for making informed decisions and securing your financial future. In this program, you’ll gain hands-on experience with key topics such as understanding the differences between cash flow and the income statement, analyzing cash performance, forecasting future cash needs, and recognizing early warning signs of financial distress.
Using real-world examples and Excel applications, you’ll learn how to prepare cash flow statements, create projections from balance sheets and income statements, and apply advanced concepts such as Discounted Cash Flow (DCF) for valuation. Additionally, you’ll explore how cash flow analysis determines repayment capacity and assesses working capital efficiency. Empower yourself with these tools to optimize liquidity and profitability—the two pillars of financial success.
CONTENT
Day 1: Understanding and Managing Cash Flow
1. The Importance of Cash Flow: Is Cash King?
This session will focus on why cash flow can be more important than profitability for businesses. The critical role of cash flow in maintaining a business will be discussed.
2. Common Financial Mistakes and Cash Flow Relationship
How common mistakes in financial management affect cash flow will be examined, and how these mistakes can be avoided will be explained.
3. Cash Performance Criteria
Performance indicators for cash flow will be discussed, and how to analyze based on these criteria will be dealt with.
4. Recognizing Early Warning Signals
Early warning signals that will enable you to detect cash flow problems in advance will be discussed with examples and case studies.
5. The Concept of Accrual Basis in Accounting and Problems in Application
The difficulties created by accrual accounting in practice and its effects on cash flow will be explained.
6. Differences Between Income Statement and Cash Flow Statement
The income and cash flow statements will be compared to understand how profitability and cash flow differ.
7. Relationship and Difference Between Profitability and Liquidity
Situations where a company may experience liquidity problems despite being profitable will be discussed, and the differences between these two concepts will be examined.
8. Preparing a Sample Cash Flow Statement
Participants will prepare a sample cash flow statement using real financial data.
Day 2: Advanced Techniques and Forecasting Applications in Excel
The second day will focus on more advanced cash flow forecasting techniques and Excel applications:
9. Preparing a Cash Flow Statement Using the Balance Sheet and Income Statement
A cash flow statement will be prepared using financial data from the balance sheet and income statement.
10. Cash Flow Projection Methods and Excel Applications
Different projection methods will be explained using Excel.
11. Cash Flow Statement Analysis
Participants will be taught how to analyze cash flow statements, and how these analyses can be used to evaluate the financial situation of businesses will be discussed.
12. Company Valuation with Discounted Cash Flow (DCF) Method
The valuation of a company using the DCF method and the importance of cash flow in this process will be emphasized.
13. Determining the Company's Debt Repayment Capacity Based on the Cash Flow Statement
It will be explained how to evaluate a company's debt repayment capacity based on its cash flow statement.
14. Working Capital Requirements and Management
The working capital cycle will be analyzed and capital management strategies for businesses to optimize their cash flows will be discussed.
15. Overview and Final Words
Overall evaluation of the training, questions and closing.
Additional Topics to be Covered During the Course:
• Business Cash Cycle: The cash cycle of the business, from income generation to expense payment, will be discussed in detail.
• Risks and Precautions to be Taken: Risks that may be encountered in cash flow and precautions to be taken against these risks will be discussed.
• Cash Flow Adjustment and Development Techniques: Methods for reducing cash outflows, increasing revenues and optimizing timing will be emphasized.
• Time Value of Money and Average Maturity Calculation in Excel: The concept of time value of money and average maturity calculation methods in Excel will be taught.
• Financing Cash Flow Needs: Various methods used to finance cash needs will be discussed, such as:
o Bank Loans
o Financial Leasing
o Operational Leasing (Fleet Leasing)
o Factoring
o Refinancing
o Other Alternatives
Excel Applications:
• During both days, participants will practice using Excel on the following topics:
• Cash Flow Models: Creating simple and advanced cash flow models.
• DCF Valuation: Creating a basic DCF valuation model.
Program and Participation Information
The number of participants is limited to 16. Excel applications will be used during the course, and participants are required to bring a laptop with Excel 2013 or higher installed. Basic knowledge of Excel is required.