Cash Management

by Bob Lyddon
access120 days access
cpd hours4 CPD hours
price£75+vat

This course will enable you to:

  • Familiarise yourself with all types of payment and collection instrument paper-based and electronic
  • Gain an overview of key elements of cost, including payment fees, different types of float and service fees
  • Gain a detailed understanding of the different eBanking tools available
  • Compare structures for managing bank account balances efficiently, and understand where external investing and borrowing fit into the picture

If there is no money in a business it will go bust fact. As an accountant or finance professional it is vital to your role that you make sure that the right money is in the right place at the right time to make payments.

This course looks at the basic components of cash management, namely the ways and means of paying money out and collecting money in, and the attributes of the bank accounts over which these transactions flow. It also explores the potential pitfalls and techniques for mitigating them.

The course also looks at building relationships so that you are able to work well with the people you need to pay and the people you are buying from so that you can make the most of the cash that you are moving around.

Making payments

  • What are cheques and drafts?
  • What are the different types of card?
  • How are bulk or batch payments processed?
  • How are international payments processed?
  • What is the Single Euro Payments Area?
  • What happens when subsidiaries negotiate invoice terms peer-to-peer?
  • What is multilateral netting?

Collecting payments

  • What is float?
  • What is mail float?
  • What is funds float?
  • What is information float?
  • When do banking fees apply to payments?
  • What are interchange fees?
  • What are the rules around reversal of payments?
  • When can cheques be reversed?
  • How do you reverse direct debits?
  • What happens if the creditor doesn't get their money?

Electronic banking, statements and advices

  • What are the basic functions of a bank's eBanking tool?
  • What are the pitfalls of eBanking?
  • How do banks process end-of-day reporting and reconciliation?
  • What is intraday reporting?
  • What are advices?
  • How secure are payment templates for individual payments?
  • What functions are in place for file handling?
  • What are the different approaches to eBanking?
  • What are the benefits and pitfalls of using public eBanking models?
  • What are the different SWIFT data formats?

Account structures and systems

  • What are the attributes of a basic current account?
  • What are investment accounts?
  • What are tiered interest accounts?
  • What are multi-currency accounts?
  • What is zero-balancing and target balancing?
  • When can zero-balancing and target balancing systems create intercompany relationships?
  • What does interest enhancement do?
  • What is notional pooling?
  • How does notional pooling work?

Short-term borrowing and investment options

  • What are the features of a short-term loan agreement?
  • What are the variants of bill financing?
  • What is commercial paper?
  • What are call and time deposits?
  • What is tradeable investment?
  • How do you invest in government bills and bonds?
  • How are credit risks and credit ratings measured?
  • What is liquidity risk?
  • What are the risks associated with yield curve?

Bob Lyddon is an experienced management consultant both privately and with PwC. Recent engagements include running the IBOS international banking alliance, designing a cross-currency notional pooling service, advising a UK association of payment providers how to access UK and international payment systems, and advising a major player in global payments as to the opportunities and threats arising from the establishment of a new regulator for the UK's payment systems.

Bob is on the faculty of trainers for the UK Association of Corporate Treasurers, and regularly contributes to industry conferences and periodicals.

With PwC, Bob managed several programmes at the time of the initial introduction of the Euro, and prior to that, in a career in international banking spanning 17 years, Bob designed the "Connector" payments network for Bank Boston, and arranged numerous syndicated loans and derivatives transactions for Chemical Bank/Manufacturers Hanover and for Lloyds Bank International.

Bob Lyddon holds a First Class degree in Modern Languages from the University of Cambridge.

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