The Treasury possesses a variety of cash management functions that allow banks to provide services to their customers.
The Treasury possesses a variety of cash management functions that allow banks to provide services to their customers. These services enable corporate customers to make decisions and streamline their cash management. Additionally, they allow customers to automate payments such as payroll and collections. This online training course explains key concepts of cash management including cash flow forecasting, working capital, and debt-equity financing.
Skills you’ll gain
Cash ControlCash Flow ManagementCash HandlingCash ManagementTreasury ManagementTreasury ServicesWhat You'll Learn
- Explain key cash management functions of the Treasury and the services banks provide to corporate customers
- Apply cash flow forecasting using two methods, time horizons, frequency, time intervals, and business cycle forecasting
- Analyze working capital, including gross versus net and how to measure performance
- Calculate working capital turnover, accounts receivable turnover, and accounts payable turnover ratios
- Compare companies using the accounts receivable turnover ratio
- Manage debt and equity financing as part of cash management decisions
Key Takeaways
- Treasury cash management functions let banks provide services that help corporate customers make decisions and streamline their cash management.
- These services enable customers to automate payments such as payroll and collections.
- Cash flow forecasting can be approached through two methods and varies by time horizon, frequency, and time intervals, and is affected by the bullwhip effect and the business cycle.
- Working capital performance can be measured using ratios such as the working capital turnover ratio, accounts receivable turnover ratio, and accounts payable turnover ratio.
- Cash management also covers debt management and equity management as forms of financing.
Frequently Asked Questions
What does this Cash Management course cover?
It explains key concepts of cash management including cash flow forecasting, working capital, and debt-equity financing, covering topics such as cash forecasting methods, the bullwhip effect, business cycle forecasting, working capital ratios, and debt and equity management.
Who is this course for?
It is aimed at those working with Treasury and bank cash management services for corporate customers, who want to make decisions and streamline cash management, including automating payments such as payroll and collections.
What skills will I gain from this course?
The course develops skills in cash control, cash flow management, cash handling, cash management, treasury management, and treasury services.
Which forecasting topics are included?
It covers cash forecasting, two methods, time horizon, frequency and time intervals, the bullwhip effect, and business cycle forecasting.
What performance measures does the course teach?
It teaches how to measure working capital performance using the working capital turnover ratio, accounts receivable turnover ratio (including comparing companies), and accounts payable turnover ratio.
Transcript
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Cash Management Welcome to KnowledgeCity's training course on Cash Management. The treasury department plays a central role in finance. This course is designed to teach the fundamentals of treasury functions and products. The cash management function allows banks to offer services, enabling corporate customers to access information they need to make decisions and streamline their cash management, as well as automate payments, including payroll and collections. Cash management also enables companies to forecast and optimize cash flow, simplify accounting, control disbursements, reconcile accounts cost-effectively and help protect against fraud. In cash management, we will review cash flow forecasting, working capital, and debt and equity financing. By the end of this course, you will be able to explain the details of cash management. Let's get started with Cash Flow Forecasting.
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