Working Capital Management Certification
About Working Capital Management
Working capital management is the process of managing a company's short-term assets and liabilities in order to maintain its day-to-day operations and ensure its ability to meet its financial obligations. It involves managing the balance between a company's short-term assets (cash, accounts receivable, and inventory) and its short-term liabilities (accounts payable and short-term debt).
The goal of working capital management is to ensure that a company has sufficient liquidity to meet its short-term obligations and take advantage of new opportunities. This involves managing the company's cash flow, inventory levels, and credit policies.
Effective working capital management can help a company to improve its cash flow, reduce its borrowing costs, and increase its profitability. It can also help to improve a company's ability to manage risk and respond to unexpected events.
Working capital management can be divided into three main components:
Cash management: managing the flow of cash in and out of the company to ensure that it has sufficient liquidity to meet its short-term obligations.
Inventory management: managing the level of inventory to ensure that the company has sufficient stock to meet customer demand while minimizing holding costs.
Credit management: managing the company's credit policies to ensure that it is able to extend credit to customers while minimizing the risk of bad debt.
In summary, Working Capital Management is the process of managing a company's short-term assets and liabilities to maintain its day-to-day operations and ensure its ability to meet its financial obligations. It aims to ensure that a company has sufficient liquidity to meet its short-term obligations and take advantage of new opportunities. It is divided into three main components: cash management, inventory management, and credit management.
Who should take the Working Capital Management Certification exam?
Working Capital Management course is suitable for finance and accounting professionals, business owners, and executives who want to learn how to effectively manage the short-term financial resources of a company. The course is also suitable for those who want to improve their understanding of the principles and practices of working capital management, including cash management, accounts receivable management, and accounts payable management.
Working Capital Management Certification Course Outline
Introduction to working capital management, including the definition of working capital and the importance of managing working capital effectively.
Cash management, including forecasting cash flow, managing cash balances, and using cash management tools such as cash budgeting, cash concentration, and cash pooling.
Accounts receivable management, including credit policies, credit analysis, collections, and factoring.
Inventory management, including inventory control systems, inventory forecasting and ordering, and inventory turnover ratios.
Accounts payable management, including payment terms, discount policies, and managing relationships with suppliers.
Working capital financing, including short-term financing options such as lines of credit and trade credit, and the use of ratios such as the current ratio and the quick ratio to evaluate a company's working capital position.
Risk management in working capital, including how to identify and manage risks related to working capital, such as liquidity risk and credit risk.
Working capital management in different industries, including how working capital management practices vary across different industries, such as retail, manufacturing, and healthcare.
Global working capital management, including how to manage working capital in a global context, including currency risk and cross-border transactions.
Hands-on practice and project-based learning, including forecasting cash flow, managing accounts receivable and payable, and evaluating and managing working capital ratios.