Financial Planning and Analysis: Monthly Cash Flow Forecast Modelling

Financial Planning and Analysis: Monthly Cash Flow Forecast Modelling

Course Overview

This 5-day intensive course focuses on Financial Planning and Analysis (FP&A) with a specific emphasis on monthly cash flow forecast modelling. Participants will learn how to create and maintain accurate cash flow forecasts, analyse cash flow data, and use these insights for effective financial planning and decision-making. The course combines theoretical knowledge with practical exercises to develop robust forecasting models tailored to various business scenarios.

Target Audience

• Financial analysts and planners
• Budgeting and forecasting professionals
• CFOs and finance managers
• Business owners and operations managers

Course Objectives

• To understand the principles and importance of cash flow forecasting
• To develop skills in creating and maintaining accurate monthly cash flow forecasts
• To analyse cash flow data and identify key drivers and trends
• To integrate cash flow forecasts with overall financial planning and strategic decision-making
• To use forecasting models to support business decisions and improve financial management

Day-by-Day Course Outline

Day 1: Introduction to Cash Flow Forecasting

• Overview of cash flow forecasting: Purpose and benefits
• Key components of cash flow forecasts: Inflows, outflows, and net cash flow
• Understanding cash flow cycles and seasonal variations
• Basic techniques for forecasting cash flow: Historical data analysis and trend estimation
• Case study: Developing a basic cash flow forecast for a small business

Learning Outcome:

Participants will gain a fundamental understanding of cash flow forecasting and how to create a basic cash flow model.

Day 2: Building Monthly Cash Flow Forecast Models

• Designing a cash flow forecasting model: Structure and inputs
• Forecasting methods: Direct vs. indirect cash flow forecasting
• Collecting and integrating data: Sales projections, expense estimates, and capital expenditures
• Practical exercise: Building a monthly cash flow forecast model using historical data

Learning Outcome:

Participants will learn how to build and structure a detailed monthly cash flow forecast model, incorporating various data inputs.

Day 3: Analysing and Interpreting Cash Flow Data

• Techniques for analysing cash flow forecasts: Variance analysis and trend analysis
• Identifying key drivers of cash flow: Revenue streams, cost behaviour, and working capital management
• Scenario analysis: Evaluating different financial scenarios and their impact on cash flow
• Workshop: Performing variance analysis on a cash flow forecast and interpreting results

Learning Outcome:

Participants will develop skills in analysing and interpreting cash flow data to identify trends and drivers affecting financial performance.

Integrating Cash Flow Forecasts with Financial Planning

• Linking cash flow forecasts with overall financial planning and budgeting
• Aligning cash flow forecasts with strategic goals and financial objectives
• Managing cash flow risks: Contingency planning and liquidity management
• Communicating cash flow forecasts to stakeholders: Reporting and presentation techniques
• Case study: Integrating cash flow forecasts into a comprehensive financial plan

Learning Outcome:

Participants will learn how to integrate cash flow forecasts into broader financial planning and strategic decision-making processes.

Day 5: Advanced Forecasting Techniques and Best Practices

• Advanced techniques in cash flow forecasting: Monte Carlo simulations and scenario planning
• Best practices for maintaining and updating cash flow forecasts
• Leveraging technology and software tools for cash flow forecasting
• Group project: Developing a comprehensive cash flow forecasting model and presenting findings
• Course wrap-up and feedback session

Learning Outcome:

Participants will acquire advanced forecasting techniques and best practices, and be able to develop and present a comprehensive cash flow forecasting model.

By the End of the Course, Participants Will Learn:

• The principles and techniques of monthly cash flow forecasting
• How to build and maintain detailed cash flow forecast models
• Methods for analysing and interpreting cash flow data to inform decision-making
• Integration of cash flow forecasts with overall financial planning and strategic goals
• Advanced forecasting techniques and best practices for effective cash flow management

Course Delivery Methods

• Expert-led lectures and interactive presentations
• Hands-on exercises in building and analysing cash flow forecasts
• Workshops on integrating forecasts with financial planning and risk management
• Case studies and group projects to apply course concepts in practical scenarios
• Tools and software demonstrations for advanced forecasting techniques

Course Dates and Venue locations:

The Certificate:

After attending and completing the entire ARUK training course, delegates will be issued a Certificate of Completion

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4500 £ (Inc. VAT)