Working Capital And Debtors Management Course

Course Overview:

This course will provide participants with a set of theoretical knowledge and practical skills necessary for the optimization of working capital, management of cash flows, and improvement of business liquidity.

It is expected that at the end of this course, the students will grasp some fundamental concepts relating to working capital, including the cash conversion cycle, liquidity ratios, and the formulation of credit policies. Participants will be able to assess and interpret the working capital operating cycle’s length and the global working capital financing cycle i.e. stock turnover cycle and make judgments on the level of credit policies and terms and their implications on revenue and cost structure.

These will be complemented by understanding treasury management functions, working capital management technologies, and diverse strategies for working capital funding through suppliers and factoring receivables. Aimed at accountants and their managers, business managers and owners, finance personnel, the course also considers the strategic aspects of the working capital management in the context of the generation of profits and the financial management.

Course Objectives:

By the end of Working Capital And Debtors Management training Course, participants will 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 maximization 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 organization
• Business owners who want to analyze the cash operating cycle of their companies
• Anyone interested in finance or related fields.

Course Outlines:

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

Working Capital Optimization - theory

• Economic Order Quantities
• Process improvement

Working Capital Optimization – basic practice

• Credit control
• Stock control techniques
• Debtor management & the costs of offering credit
• Management reporting – KPI;s

Working Capital Optimization – advanced practice

• Treasury procedures
• Technology solutions
• Payment systems
• End to end cash flow management
• Outsourcing of debt management

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

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

see more: Accounting and Finance for Managers Course