CFM Course

Lesson 1 • Why Cash Flow Differs from Profit

Explains accrual accounting distortions and non-cash charges. Clarifies why profitable firms can still face cash shortfalls.

Lesson 2 • Cash Flow Statement Structure

Breaks down the three-section cash flow statement: operating, investing, and financing. Enables accurate reading and interpretation of financial reports.

Lesson 3 • Cash Flow Concepts and Terminology

Defines cash inflows, outflows, net cash flow, and liquidity. Provides the shared language used throughout the entire course.

Lesson 1 • Forecasting Approaches and Time Horizons

Compares direct, indirect, and hybrid forecasting methods across weekly, monthly, and quarterly horizons. Matches method selection to business context.

Lesson 2 • Expenditure and Payment Forecasting

Identifies and schedules all cash outflows including payroll, suppliers, and debt service. Ensures outflow accuracy in the forecast model.

Lesson 3 • Forecast Accuracy and Error Analysis

Measures forecast performance using variance analysis and error metrics. Drives continuous improvement in forecasting discipline.

Lesson 4 • Revenue and Collections Forecasting

Projects cash inflows from sales using historical patterns, payment terms, and customer behaviour. Anchors the inflow side of any forecast model.

Lesson 1 • Accounts Receivable Management

Covers credit policy design, invoicing discipline, and collections processes. Directly accelerates cash inflows and reduces days sales outstanding.

Lesson 2 • Inventory Management for Cash Flow

Applies demand forecasting and reorder strategies to minimise excess stock. Frees cash locked in inventory without risking stockouts.

Lesson 3 • Working Capital Metrics and Benchmarking

Quantifies working capital efficiency using key ratios and industry benchmarks. Enables data-driven prioritisation of improvement initiatives.

Lesson 1 • Banking Relationship and Fee Management

Analyses bank service charges, negotiates fee structures, and evaluates bank performance. Reduces banking costs and strengthens credit access.

Lesson 2 • Bank Account Structures and Pooling

Designs account hierarchies using notional pooling and zero-balance structures. Maximises interest efficiency and centralises liquidity visibility.

Lesson 3 • Daily Cash Position Management

Establishes routines for monitoring and confirming daily cash balances across accounts. Prevents overdrafts and idle cash accumulation simultaneously.

Lesson 1 • Revolving Credit Facilities

Explains revolving credit structure, borrowing base, and covenant requirements. Positions the revolver as the primary liquidity backstop for most businesses.

Lesson 2 • Financing Cost Analysis and Selection

Compares all-in costs across financing options using standardised metrics. Enables rational selection of the lowest-cost appropriate instrument.

Lesson 3 • Short-Term Investment of Surplus Cash

Identifies safe, liquid instruments for deploying temporary cash surpluses. Balances yield, liquidity, and credit risk for idle cash.

Lesson 4 • Receivables Financing Options

Compares factoring, invoice discounting, and asset-based lending structures. Converts receivables into immediate cash without traditional debt.

Lesson 1 • Scenario Analysis and Stress Testing

Constructs base, downside, and severe stress scenarios for cash flow projections. Quantifies potential cash shortfalls under adverse conditions.

Lesson 2 • Contingency Liquidity Planning

Designs pre-approved contingency actions for cash shortfall scenarios. Ensures rapid response without ad hoc decision-making under pressure.

Lesson 3 • Foreign Exchange Risk Management

Applies natural hedging, forward contracts, and options to manage currency exposure. Protects cash flow from exchange rate volatility.

Lesson 1 • Cash Flow Dashboard Design

Structures a visual cash flow dashboard for daily, weekly, and monthly audiences. Applies data visualisation principles to maximise insight speed.

Lesson 2 • Variance Analysis and Root Cause Reporting

Explains actual-vs-forecast variances with structured root cause narratives. Transforms raw numbers into actionable management commentary.

Lesson 3 • Reporting Cadence and Governance

Establishes reporting schedules, ownership, and review meeting structures. Embeds cash flow discipline into organisational governance routines.

Lesson 1 • Communicating Cash Strategy to Stakeholders

Frames cash flow strategy for boards, investors, and lenders using clear financial narratives. Builds credibility and secures stakeholder confidence in liquidity management.

Lesson 2 • Capital Allocation Framework

Prioritises competing uses of free cash flow using a disciplined allocation hierarchy. Balances reinvestment, debt reduction, and shareholder returns.

Lesson 3 • Cash Flow in Mergers and Acquisitions

Applies cash flow analysis to target valuation, deal structuring, and integration planning. Identifies cash flow synergies and risks in M&A transactions.