Optimization of the company's cash flow

2 ° the second step focuses on the anticipation of the flow of operations for the coming year:
Loads,
Products,
Forecast operating income.
These flows are grouped in 'operating budgets. From these data the "provisional result account' is constructed of the
reporting period.
3 ° the last stage of the predictive analysis led to the consolidation of forecast cash flow in "Cash Budget".
In reality, the adjustment of revenues and expenditures at the lowest cost requires a genuine “estimated cash
device”. Movements of funds that affect availability are the result of a company given or received by the company.
These commitments are generally classified under two headings:
1. Commitments off-operation:
*Firstly, investment, the origin of acquisition expenses, and,
*On the other hand, the financial transactions which include essentially financing transactions, repayment
of loans and payment of dividends.
2. Commitments of exploitation: from the normal and common activity company, originally of revenue and
operating expenses.
The cash budget is over a given period, generally the month and year, the anticipation of the movement which may
modify the cash position. There are two types of conventional and complementary methods for the preparation of
the cash flow forecast:
Method “recipes – expenditure”,
The method “resources – needs”.
3.1 - THE METHOD “REVENUE – EXPENSES”.
Simple in principle, it is more difficult to implement.
3.1.1- THE PRINCIPLE OF THE METHOD.
As its name implies, this method consists of a comprehensive census entries and liquidity outflows. Then arise the
problem of the census period and forecast technique.
1 - DETERMINATION OF THE HORIZON AND NO CASH FORECASTING.
Practitioners call:
'Horizon', the overall period of anticipation, and,
«No», the subdivision of the horizon.
The cash-flow forecasts generally cover a year, with a not monthly. Sometimes they are on a shorter term. But to
ensure the financial balance for the coming months does not offsets that arise inevitably between the inputs and
outputs daily Fund. Very short-term forecasts are to coincide payment options and regulations to operate.
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