Optimization of the company's cash flow

The total balance of transactions between the company and each of its bankers said the gain (or loss) that latter
derive. This is the starting point for the negotiation of Bank conditions.
2 - Practical preparation of transactions undertaken banks operating account.
SECTION 2: CASH FLOW FORECASTING
The forecast of revenue and expenditure is to determine variations in the bank balance and therefore needs or
potential financial surpluses in the very short term. This forecast allows to draw a "cash line" in value date thus
defining actions to be taken on the basis of the objective "zero-cash. The maintenance of a balance person in different
banks is the way to minimize financial costs while ensuring the solvency of the firm.
In practice this policy develops in two stages:
Is, on the one hand, the development and implementation of a system of analysis of cash receipts and
disbursements dated value. The Treasurer thus determine the importance and duration of possible financial
needs. It ensures, in addition, the solvency of the firm;
It is, on the other hand, action on regulation and recovery procedures to reduce the needs or surplus funding
in the short term. The Treasurer 'smooth cash flow curve", and improves by the fact even the profitability of
the company.
I. ANALYSIS OF CASH FLOW.
The company must take a 'daily tracking card' by Bank. A daily tracking sheet is an array of situation in value which
includes the expected revenue and expenditure broken down by mode of regulation for the days to come. Familiar
with the movement of funds, the Treasurer is able to take financing decisions or optimal investment, but also to
consider procedural reforms handing thus questioned the spontaneous conduct of operations.
Implement such a monitoring system, to solve three problems:
Systematically capture information,
know the structure of cash receipts and disbursements,
Reduce the risks that weigh in the short term on the inputs and outputs of funds.
A – Treasury-Data collection system
The quality of the predictions depends to a large extent by the quality of the input information. To receive revenue
and costs in the coming days will result in vast majority of previous decisions. These decisions are generally known
by some in the company: the Treasurer may therefore know them; the problem is to inform. Officials of the company
whose actions or decisions directly translates into disbursements or of receipts can provide a relatively certain
information. The Treasurer must therefore require their production estimates of cash flows, or, put in the main
services a "corresponding - treasurer" responsible for collecting the information
In addition to traditional accounting will be developed some specific to the cash management documents.
Movements of funds may give rise to a presentation based on their behavior (fixed or variable), their periodicity, or
their importance. They can also be summarized by mode of regulation, by period of regulation or place of payment.
Similarly, it will be much more effective to post in value date. The system can only work if standards have been
established to characterize each stream according to the criteria of analysis concerning.
Thus the movement of cash will be divided into four classes:-movements are known to some, including the
completion date and the amount (for example, the payment of wages generally); -the uncertain movements on their
Page 90 of 124