Cash flow forecasting is the bedrock of a company's financial health and operational stability. It is the art and science of predicting future cash inflows and outflows, providing a clear roadmap that allows businesses to anticipate financial needs, avoid liquidity crises, and seize growth opportunities with confidence. In today's fast-paced economy, mastering this skill is no longer just a best practice—it's a critical strategic imperative for every financial professional. This training course is designed to provide you with a systematic and robust framework for building accurate and reliable cash flow forecasts.

This comprehensive program moves beyond traditional spreadsheets to empower you with the strategic insights needed for effective liquidity planning. You will learn to identify key drivers of cash flow, model various scenarios, and develop agile strategies to manage working capital and mitigate risk. By the end of this course, you will be equipped to transform your financial forecasting from a reactive exercise into a proactive tool that drives strategic decision-making, ensuring your organization remains solvent, resilient, and ready for future success.

Duration

5 days

Target Audience

• Financial controllers and managers
• Chief Financial Officers (CFOs)
• Accountants and treasurers
• Business owners and entrepreneurs
• Strategic planners
• Senior executives and decision-makers
• Financial analysts
• Risk managers
• Supply chain and operations managers
• Individuals responsible for business budgeting

Objectives

• Understand the fundamental components of cash flow.
• Differentiate between direct and indirect cash flow methods.
• Develop a practical methodology for creating cash flow forecasts.
• Identify key drivers of cash inflows and outflows.
• Master techniques for effective working capital management.
• Implement scenario and sensitivity analysis for forecasting.
• Mitigate liquidity risks and plan for cash shortages.
• Use cash flow forecasting to inform capital expenditure decisions.
• Present and communicate cash flow insights to stakeholders.

Course Modules

Module 1: Fundamentals of Cash Flow

• The importance of cash flow vs. profitability.
• Components of the statement of cash flows.
• Direct and indirect methods of cash flow reporting.
• The difference between short-term and long-term forecasts.
• Key terminology and definitions.

Module 2: Building a Cash Flow Forecast

• A step-by-step guide to forecasting cash inflows.
• A step-by-step guide to forecasting cash outflows.
• The role of accounts receivable and accounts payable.
• How to use historical data for trend analysis.
• Practical exercises on building a simple forecast.

Module 3: Liquidity Management and Working Capital

• Defining working capital and its components.
• Strategies for optimizing cash conversion cycle.
• Managing accounts receivable and credit policy.
• Managing accounts payable and supplier relations.
• Inventory management's impact on cash flow.

Module 4: Advanced Forecasting Techniques

• Using rolling forecasts for dynamic planning.
• The importance of scenario planning.
• Conducting sensitivity analysis to identify key variables.
• Incorporating statistical methods for more accurate predictions.
• Forecasting cash flow in a volatile business environment.

Module 5: Risk and Mitigation

• Identifying common liquidity risks.
• Contingency planning for cash shortages.
• The role of credit lines and short-term financing.
• Mitigating foreign exchange risk and interest rate risk.
• Early warning signs of a cash flow problem.

Module 6: Technology and Tools

• Overview of forecasting software and tools.
• Leveraging spreadsheet functions for complex modeling.
• The role of enterprise resource planning (ERP) systems.
• Integrating forecasting with other financial planning tools.
• Best practices for data collection and integrity.

Module 7: Strategic Applications and Case Studies

• Using cash flow forecasts to support capital budgeting decisions.
• Case studies from various industries.
• Communicating forecast assumptions and outcomes to management.
• Developing a liquidity policy for your organization.
• A final workshop: creating a strategic liquidity plan for a sample company.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.