Business Modelling & Cash flow maintenance
Course Info
Code PF1-141
Duration 5 Days
Format Classroom
Course Summary
Financial modelling is an indispensable tool for businesses, playing a critical role in strategic decision-making, planning, and overall financial management. By creating mathematical representations of a company's financial situation, financial modelling enables businesses to simulate various scenarios and assess the potential impact of different decisions.
This process aids in forecasting future financial performance, identifying risks and opportunities, and making informed investment or operational choices. Financial models are instrumental in budgeting, valuation, and scenario analysis, providing a comprehensive understanding of a company's financial health.
They also offer a structured approach to evaluate the consequences of different business strategies, helping management teams make sound decisions that align with organisational goals. Understanding how to create and read a financial model to predict future trends is pivotal for the success of any business and can contribute to business success over similar organisations.
During this course, you’ll learn:
- To gain proficiency in diverse forecasting techniques available in Excel and apply them effectively to analyse your specific data.
- To employ ratio analysis as a method for generating forecasts, enhancing your understanding of financial projections.
- To evaluate the impact of company strategy on cash flows, using them as a key indicator of future financial health.
- To structure an optimal repayment schedule based on base case and downside cash flow forecasts, considering potential challenges in the future operating environment.
- To utilise cash flow forecasts and financial models to inform the drafting of loan document term sheets.
- To formulate expectations for future performance, presenting forecasted statements and cash flows to support strategic decision-making.
- To develop a flexible model capable of reviewing various scenarios, enabling quick adjustments of inputs and efficient access to results.
This course is designed for anyone responsible for designing financial models or utilising data within financial models in order to drive strategic decision-making. It would be most beneficial for:
- Business Owners
- Financial Managers
- Chief Financial Officers
- Accountants
- Data Analysts
- Operations Managers
- Company Executives
- Directors
This course uses a variety of adult learning styles to aid full understanding and comprehension. Participants will review various methods of financial model creation to understand which may be most beneficial to their organisation.
They will have the opportunity to discover various systems and platforms to aid with financial modelling and take part in group discussions to understand the importance of financial modelling and cash flow maintenance within various projects and industries.
Course Content & Outline
Section 1
Why Accurate Forecasting Matters
- Impacts of accurate forecasting on strategic planning.
- Assessing risks and opportunities with reliable predictive analysis.
- Integrating technology for improved forecasting accuracy.
- Real-world applications of accurate forecasting in various industries.
- Building robust financial models for enhanced forecasting.
Section 2
How to Create an Accurate Forecasting Model
- Selecting and incorporating appropriate data sources.
- Techniques for cleaning and preparing data for forecasting.
- Choosing the right forecasting methods and algorithms.
- Utilising Excel and other tools for model development.
- Integrating historical data for trend analysis.
- Understanding seasonality and its impact on forecast accuracy.
- Validating and adjusting models for optimal results.
- Incorporating external factors and market trends.
- Strategies for continuous model improvement and adaptation.
Section 3
Cashflow Tactics
- Incorporating technology for streamlined cash flow processes.
- Implementing strategies to improve cash flow.
- Managing receivables and payables efficiently.
- Exploring short-term financing options.
- Cash flow forecasting techniques.
- Mitigating risks and uncertainties in cash flow.
- Creating effective cash flow projections.
- Identifying and addressing cash flow gaps.
- Utilising financial tools for cash flow analysis.
Section 4
Using Systems & Technology to Manage Cashflow
- Enhancing accuracy through data synchronisation.
- Implementing effective budgeting within cash flow systems.
- Customising alerts for cash flow anomalies.
- Managing multiple currencies in cash flow systems.
- Ensuring data security and compliance in cash flow management.
- Training and onboarding for employees on cash flow systems.
Section 5
Ratio Monitoring
- Key financial ratios for performance evaluation.
- Liquidity ratios and their significance.
- Solvency ratios: assessing long-term financial health.
- Profitability ratios and their impact on business success.
- Efficiency ratios: optimising resource utilisation.
- Trend analysis in ratio monitoring.
- Interpreting industry benchmarks for ratios.
- Common pitfalls in ratio analysis.
Section 6
Assumptions and Predictions
- Techniques for testing and validating assumptions.
- Incorporating uncertainty into predictive models.
- Statistical methods for making predictions.
- Machine learning algorithms and their reliance on assumptions.
- Ethical considerations in making predictions.
- Real-world applications and case studies in predictions.
Section 7
Modelling Accounting Statements
- Cash flow statement modelling and forecasting.
- Linkages between different financial statements.
- Sensitivity analysis in accounting statement models.
- Financial modelling best practices and conventions.
- Excel skills for effective accounting statement modelling.
- Application of models in financial decision-making.
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