Course Objectives

• Understand the role of cash and treasury management in corporate finance
• Manage credit and accounts receivable
• Determine and use the collections systems
• Determine and use the cash concentration  systems
• Manage accounts payable and disbursements
• Be familiar with electronic commerce
•  Forecast cash flows
• Understand how companies typically determines short-term investment policies
• Understand the principal features of borrowing alternatives
• Understand the basic difference between hedging and speculating
• Develop appropriate interest rate hedging strategies
• Be familiar with the international

Who Can Benefit?

• Every person who deals with finance and treasury accountants, financial consultants, treasurers, cash managers, financial directors, staff members of the financial department, controllers.

Course Outline

•  The Role of Cash and Treasury Management in Corporate Finance
  • The objectives of cash management
  • How cash management supports major corporate financial objectives
  • The major functions of cash management within the treasury function
  • The place of cash management in the corporate financial function
  • The historical evolution of cash management in the United States
  • Financial Accounting and Relating Concepts

• Credit and Accounts Receivable Management

• The objectives of credit and accounts receivable management
• How credit and account receivable management fit into corporate finance and treasury operations
• How companies develop credit policies
• How companies calculate the costs and benefits of credit policies
• The forms of credit extension

• Collections

• The objectives of a corporate collection system
• The components of collection float
• The differences among over-the-counter, mail and electronic collection methods and how to choose the appropriate system
• The three different types of lockboxes and issues involved with lockbox selection

• Cash Concentration

• The objectives of a cash concentration system
• Factors impacting cash concentration system configuration
• The advantages and disadvantages of funds transfer mechanisms used in cash concentration systems

• Accounts Payable and Disbursements

• The objectives of accounts payable and disbursement systems
• The components of disbursement float
• Disbursement products and their applications
• The accounts payable function
• Check reconciliation and supporting services
• Technological developments in accounts   payable

• Electronic Commerce

• The basics of electronic commerce (EC)
• The evolution of e-commerce as well as the cost, benefits and barriers to implementation
• How e-commerce standards are used
• The key terms and languages used for e-commerce on the Internet
• Information Management and Technology

• Forecasting Cash Flows

• The objectives of cash forecasting
• The steps in the forecasting process
• The distinction between short, medium and long-term forecasting
• The primary forecasting methods

• Investing

• Why companies hold short-term investments
• How companies assign authority and responsibility for short-term investments
• How companies typically determines short-term investment policies
• Factors influencing short-term yields
• The most frequently issued short-term government, agency, municipal, bank and corporate short-term investment instruments

•   Borrowing

• The objectives of short-term borrowing
• The principal features of borrowing alternatives
• The common provisions of loan agreements
• Learn how to calculate the following:
•  Effective annual borrowing rate for lines of credit
• Effective annual borrowing rate for commercial paper

• Financial Risk Management

• Basic difference between hedging and speculating
• Types of hedging strategies using futures, options, swaps, and products such as interest rate ceiling, floor, and collars
• Develop appropriate interest rate hedging strategies

•  International Treasury Management

• The importance of international cash management
• The objectives of international treasury management
• The basics of foreign exchange rates and markets
• The difference between various countries' payment and banking systems
• How cross-border payments and wire transfers are made

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