The main
purpose of cash flow forecasting is to make the most out of available cash in
the future. Field professionals use cash flow forecasting to organize cash
management tasks, planning cash concentration transfers, funding disbursement
accounts, and deciding on short-term investments and borrowing. Despite its
significance, estimating cash flow is still an inexact science, mostly because
so many assumptions must be made. This workshop is designed to give
participants an overview of the skills required in an exceptional forecaster
and the best practices in the field. It explains the forecasting process and
differentiates between its different types. Finally, 3 different simulations
and a case study are added to give participants the chance to practice the
acquired knowledge.
Understand the characteristics of the exceptional cash management forecaster
Use benchmarking forecasting between different industries
Use benchmarking forecasting between different industries
Apply the best practices in cash flow forecasting
Differentiate between different types of forecasting
Uses for Cash Flow Forecasts
Issues and Opportunities in Forecasting
Predictive forecasts and Analytical forecasts
Forecasting Horizon
Update Frequency
Projected Closing Cash Position
Cash Flow Components
Degree of Certainty
Data Identification and Organization
Selection and Validation of the Forecasting Method
Short-Term Cash Flow Forecasting Methods
Accounts Receivable (A/R) Balance Pattern Forecast
Distribution Forecast
Receipts and Disbursements Forecast
Medium- and Long-Term Cash Flow Forecasting Methods
Statistical Methods in Forecasting
Simulation: Daily bank
position
Simulation: Weekly
Projection
Simulation: Annual cash
plan
Case Study: Basic Financial
Model
Forecasting teams, Budget and planning managers, Accountants, Cash managers, Cash specialists, Treasury managers, Liquidity team, Corporate finance managers
