Optimization of the company's cash flow

However, this document synthesizes that variations aggregated on a space of time. It does not reveal how the
financial balance has been maintained throughout the period. In other words, how they covered the assets’ needs.
Indeed, their coverage depends on the importance of the Fund bearing and the possibilities of short-term debt, i.e.
of the policy of investment and financing of the firm. The difficulties of approach to the movement of cash and
changes in working capital needs will appear in predictive analysis of cash flows.
1 - THE ANTICIPATION OF THE CONDITIONS FOR THE FINANCIAL BALANCE: CASH FLOW FORECASTING.
The traditional techniques of management planning provide, from the consolidation of forecast of cash flows,
financing plans and budgets of cash. The procedure which leads to the assessment of cash forecasting involves three
essential steps:
1 ° the first stage presents turnover expected movements.
This evolution is traced in a funding plan which includes:
In 'planned jobs', assets increases and decreases in liabilities;
In 'Predicted Funds Applied', liability increases and decreases of assets.
He translated the management constraints and choices of the contracted entrepreneur concerning both the
operation and development of the company. From these forward-looking changes and taking into account the
balance at beginning of period, establishing the forecast supply balance, instrument of control. It allows to compare
the financial situation envisaged at the end of the baseline period. An audit of the whole is possible through the cash:
It is calculated in the forecast supply balance by difference between the Working Capital Fund and the
forecasted working capital requirements;
It appears clearly in the financing plans, as can realize in the following document
Treasury
Treasury
Years 20… 20… 20… 20.. Total
Investment Program………………..………………..………………………..
Last year Investment program product………………..………………
Diverse charges………………..………………..………………..………………
Extra need of funds………………..………………..………………………….
Reconstitution of working capital fund………………..……………….
Due date of Loan………………..………………..………………..…………….
Due date of Other loans………………..………………..……………………
Dividends distribution………………..………………..……………………….
Reimbursement of loan………………..………………..…………………….
Total Needs
Increase in Turnover………………..………………..………………………..
New associates’ funds………………..………………..………………………
Diverse resources………………..………………..…………………………….
Self-financing before distribution………………..………………………
Working capital funds………………..………………..………………………
Short term loans………………..………………..………………..…………….
Other long term loans ………………………………..……………………….
Total Resources
Difference
Accumulated Difference
Table n°8: Treasury’s Plan
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