Optimization of the company's cash flow
This book is about the company's treasuries and financial management, more specifically; it shows how a company can manage its treasury in an efficient and short way.
This book is about the company's treasuries and financial management, more specifically; it shows how a company can manage its treasury in an efficient and short way.
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<strong>the</strong>refore behave both in a retrospective perspective and from a forward-looking perspective. The following synoptic<br />
table consolidates <strong>the</strong> various financial documents that are reached:<br />
Financial and accounting<br />
records<br />
'direct' Impact <strong>of</strong> <strong>the</strong> <strong>flow</strong> <strong>of</strong> funds<br />
on <strong>the</strong> heritage <strong>of</strong> <strong>the</strong> firm (jobs and<br />
long-term resources)<br />
"indirect" Impact <strong>of</strong> <strong>the</strong> <strong>flow</strong><br />
<strong>of</strong> funds on <strong>the</strong> heritage <strong>of</strong> <strong>the</strong><br />
firm (operating cycle)<br />
Retrospective records<br />
Prospective Documents<br />
Balance Sheet – Table <strong>of</strong> funding<br />
(or in’s and out’s) pr<strong>of</strong>it and loss<br />
Income Statements<br />
account<br />
Documents de synthèse :<br />
Tableau des variations d’encaisse<br />
Plan funding<br />
Operating Budget<br />
(or investment)<br />
Syn<strong>the</strong>sis Documents:<br />
<strong>cash</strong> (annual)<br />
Budget forecast (monthly) <strong>cash</strong> Positions<br />
Balance-Sheet Forecast<br />
Forecasted Income Statements<br />
TABLE n° 4: Documents analysis <strong>of</strong> <strong>flow</strong>s <strong>of</strong> funds.<br />
I - THE RETROSPECTIVE ANALYSIS OF THE VARIATIONS OF CASH: THE EXPLANATION OF THE FINANCIAL BALANCE.<br />
The fact that a company continues to exist is pro<strong>of</strong> that financial balance has been achieved so far. This finding does<br />
not, however, to assess <strong>the</strong> conditions in which <strong>the</strong> credit has been provided. Admits so commonly a double interest<br />
in an ex-post variation <strong>of</strong> <strong>cash</strong> consideration:<br />
Firstly, it is <strong>the</strong> instrument <strong>of</strong> an explanatory study <strong>of</strong> <strong>the</strong> movements <strong>of</strong> funds passed;<br />
On <strong>the</strong> o<strong>the</strong>r hand, it provides a means <strong>of</strong> control <strong>of</strong> <strong>the</strong> forward-looking management <strong>of</strong> <strong>cash</strong>.<br />
Financial analysis known at <strong>the</strong> present time, reconstruct variations in <strong>cash</strong> in a real summary table <strong>of</strong> <strong>cash</strong> from <strong>the</strong><br />
General accounting data.<br />
A - THE FLOW OF FUND ACCOUNTING.<br />
The General Ledger are two types <strong>of</strong> accounts:<br />
The "balance" accounts, or accounts heritage,<br />
The "accounts", or accounts operating, and <strong>the</strong>refore, two types <strong>of</strong> <strong>flow</strong>s:<br />
1. The economic stream,<br />
2. Operation <strong>flow</strong>s.<br />
1 - HISTORIC FLOWS.<br />
The turnover <strong>flow</strong>s correspond to movements <strong>of</strong> funds affecting <strong>the</strong> balance sheet items. Their identification and<br />
<strong>the</strong>ir measurement are carried out by <strong>the</strong> comparison <strong>of</strong> various successive balance sheets. In this regard, we divide<br />
heritage <strong>flow</strong>s into two categories:<br />
1. 1 ° 'jobs' carried out by <strong>the</strong> company during <strong>the</strong> period under review; <strong>the</strong>y correspond ei<strong>the</strong>r to <strong>the</strong> assets<br />
increases, decreases in liabilities.<br />
2. 2 ° 'resources' obtained by <strong>the</strong> company during <strong>the</strong> same period; They include ei<strong>the</strong>r increases in liabilities<br />
or decreases <strong>of</strong> assets<br />
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