Cash Flow Forecasting Techniques Seminar

A famous scientist once said "the only problem with prediction is that it is about the future". No one understands this better than the treasury professional charged with the critical responsibility of predicting their company's future cash positions, which drive corporate liqudity levels, fund the operating cycle and support captial investment decisions.

Performing these forecasts and interpreting variances with any degree of confidence demands solid, competency-based skills, which is the focus of this in-depth, facilitator-led course. The format includes a combination of lecture, discussion and practical "hands-on" applications of a number of cash flow forecasting techniques practiced by treasury professionals in this mission-critical role. Take-aways include simple Excel templates for each technique covered.

• Identify cash drivers in your company
• Apply "how to" techniques for forecasting individual cash flow line items
• Learn statistical techniques for dealing with cash flow uncertainties; both on-going and one-time events
• Investigate techniques for both predicting the year-end cash balance and reconciling it to the short-term cash forecast
• Explore how to perform and interpret cash forecast variance analyses

• A quick reference guide to selected cash flow forecasting techniques that were covered in the workshop
• Selected exercises with answers for additional practice and examples
• Simple Excel templates

• Prior experience in cash forecasting will be helpful, but not absolutely essential
• Some familiarity with financial statement formats, concepts and terminology is necessary
• Bring a calculator

Identifying Cash Flow Drivers

Utilizing Statement of Cash Flows Format

Traditional Forecasting Techniques

• Application of Financial Rates
• Application of Collection Patterns

Predicting Year End Cash Balance

• Statement of Cash Flows Approach
• Balance Sheet Approach

Validating Forecasting Models

• Establishing a Forecast Error Tolerance
• Utilizing Variance Analysis
• Testing Forecast Models

Application of Statistical Techniques

• Data Smoothing Techniques
• Linear Regression
• Expected Value

One Time Uncertain Cash Flows

Case Study: "Determining a Best Forecast Model"

	CTP/CCM Recertification Credits Cash Flow Forecasting Techniques is approved for up to 11 CTP/CCM recertification credits. Credit is earned at the rate of one credit per 50 minutes of treasury/cash management or finance-related session time, including questions and answers.
	CPE Credit The Association for Financial Professionals is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Eligible for up to 11 CPE Credits Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. Web site: www.nasba.org

For more information regarding administrative policies, including submitting a complaint, please contact  AFP at 301.907.2862 or by email at AFP@AFPonline.org.