Optimization of the company's cash flow

DATE OF
OPERATION
Table n°10: Bank account movements in the D.O.O
OPERATIONS DEBIT CREDIT
« APPARENT »
BALANCE
30 / 01 CASH POOLING 4000 + 4000
31 / 01 Versement Espèce 2000
Idem Emmission de chèques 2000 + 4000
01 / 02 Avis de Debit (échéance de 31/1) 4000 0
02 / 02 Remise à l’escompte 1980 + 1980
03 / 02 Émission de chèques 1500 + 480
Table n°11 : Bank account movement in the D.O.V
VALUE DATE OPERATIONS DEBIT CREDIT
« Real »
BALANCE
30 / 01 Règlement des traites 4000 - 4000
01 / 01 Virement de compte à compte 4000 0
01 / 02 Versement en espèces 2000 + 2000
03 / 02 Remise à l’escompte 1980
Idem Règlement de chèques (présentés le 5/02) 1000 + 2980
Figure n°7: Quarterly Interest Rate showing the bank account movement
While a balance of + 4,000 appears for two days in the account "Bank" of the company, an ignored overdraft formed
January 30: the transfer of 30 January was made too late. However the cash from 31st of the same month and the
discount of 2 February release could be delayed. If the company had sufficient knowledge of forecasting movements
his bank balance, it could adjust with discernment the inputs and outputs of funds and avoid both discovered and
surpluses. Thus can we say a cash management based on a value date accounting manages to an optimum, because
it ensures the liquidity and safety of the firm while improving profitability.
It’s all about these conditions of Bank, their implementing rules and their negotiation that we’ll be analyzed in this
next chapter.
2) Negotiate the terms and conditions of Bank.
When talking about the banking conditions, it is not only the ones related to the interest rates of the different types
of short-term credit or placed in escrow account balances, but a number of clauses whose content and the
Page 86 of 124