Optimization of the company's cash flow

Regardless of the method chosen, it has yet to define the key of transactions between banks. Therefore, the Chief
Financial Officer must, for each store (BU1’s or BU2’s), compare the services rendered to the benefits that removed
the Bank from its relationship with the company. According to the nature and volume of the movements of the Bank
will be naturally different. The company will better measure what to expect from its banks that it would know what
it offers. Therefore comparison and negotiation of Bank conditions necessarily through the evaluation of the benefit
that removes every banker of its activities with the company. To monitor the level of remuneration of each store,
the Chief Financial Officer will establish a "trading account".
3.2.2 - OPERATING ACCOUNT MEASURES THE COMPANY'S OFFER TO ITS BANKERS.
This account determines the balance of the transactions between the company and each of its bankers. After setting
out the general outline of the establishment of such an account of operation.
1 - Theoretical establishment of the banks-to-business transactions operating account.
This account is established from the journal of Bank, excerpts, scales of theoretical banking conditions and quarterly
interest.
(a) The preliminary operations there are five:
1. Inventory and analysis of the existing conditions in effect.
2. Assessment of the realized movements (or realize).
3. Determination of the number of operations actually resulting in charge handling fees incurred by the banker
(treatment manual or automated operations).
4. Average calculation of the credit balance reporting period (sum of balances divided by the number of days
in the period).
5. The inventory of all the fees paid to the banker during the same period (bank charges of discounted, bank
charges on financial notes, interest expense, commission of movements, etc.).
(b) The establishment of the account itself.
The essence is not to quantify the exact cost of an operation (manipulation of a check, bank transfer or other...), no
more than to precisely assess the average cost of the Bank's resources, but to reach a mutual agreement to a
reasonable compromise to get an idea of the profit margin of the Bank and monitor future developments. This
assessment can be made by only three assumptions:
The cost of a transaction for the Bank (cashing of a check, issuance of a transfer,...);
Average cost of capital for the Bank (cost of a ready franc);
The average interest rate applied to the uses of funds (average selling price).
From these assumptions the construction of operating account becomes possible:
Side of the revenue of the Bank, it includes all charges, charges various fixed, as well as income resulting from
the float from the days of value and those corresponding to the re-use of the balances of the company;
On the side of the expenditure incurred by the Bank, found the costs of financing of appropriations used by
the company (discount, discovered, etc.) as well as expenses arising from the processing of transactions
(cashing check transfer, etc.).
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