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Cash is the most important element of survival for any businesses. Most failed businesses, up to 60%, say that all or most of their failure was due to cash flow problems. Nothing matters more than cash. Cash is king. Making profit is nice, cash flow is necessary.
However, cash flow and profit are not the same thing. Financial accounting focuses on net profit or income, while cash accounting traces cash that is actually coming in and flowing out of the company. A company may be making profit, but it does not necessarily means it has a strong cash flow.
So, what is cash management? Is cash management crucial to the growth of your company? Do you need to empower yourself the skills and tools to manage the liquidity of your business?
The answer is definitely yes. No company can even survive if it does not have cash. You need cash to grow your company too.
Objectives
The objectives of the workshop:
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Learn how some companies survive in times of a recession. |
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Accept that the cash management is crucial for managing a business. |
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Adept in interpreting the income statement, the balance sheet and the statement of cash flows. |
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Understand the meaning of cash is really king.
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Avoid the fallacies of a poor cash management. |
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Apply the simple tools on improving the health, the liquidity and the solvency of a business. |
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Analyze the aging schedule of debtors. |
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Calculate the account receivable turnover and the inventory turnover. |
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Prepare a financial forecast, a cash flow analysis and a statement of cash flows, and |
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Present a business plan in a recession. |
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