The cash flow | Actuals

When your P/L shows something but your bank account disagrees

Created by : Rated :4.7 8631 views

Last Updated: 2022-05-04 05:05:52 English Course Type: Self Learning

What is a cash flow and why do we need such report?
The structure of a cash flow statement
Direct and indirect methods
The Working Capital concept
PPE - an investment / operations cash flow problem
Visual representation

One of the three major financial statements of the company, the cash-flow report is used only sparely by FP&A (Performance management) professionals. The other two, the Profit and Loss (or SOCI) and the Balance Sheet (or SOFP) are used more intensively. The reasons behind it are both in the area of knowledge (you can not really use something you just learned a long time ago or vaguely heard about) but mostly the reality in the field. The P&L statement is used more often because it shows the performance of a company. And because it is always very difficult to introduce, explain and use as regular tool any financial statement when it comes to interacting with managers from other functions (Marketing, Sales, Supply Chain etc.).

However, companies can find themselves in troubles too. The financial crisis of 2008-2009, the Covid pandemic of 2020 but also individual cases can lead to situations when performance is no longer important (we know the company is at a loss) but surviving as an organization takes precedence. And it is in such moments when the focus shifts from wide use of P&L statements to cash flow statements, from being performant to staying solvable.

Bankruptcy is happening when there is no money left. And the impossibility of paying the due debt may or may not be related directly and on a short term with having losses.

And if we are not in a bad financial position with our company, we always get questions from the management, which are mostly caused by the fact that accounting is accruals and not cash based: "We had profit in the last months, why is our bank account empty?", "Can we do an early repayment for our credit? How much and in which month?", "Can we pay the promised $1 dividend per share in March 20xx?", "We have this large investment requiring that much money in May and June. Can we finance it by ourselves or will we need a credit?"

This course answers to the questions about the past, being focused on building a cash flow statement on past financial results ("We had profit in the last months, why is our bank account empty?").

We talk in detail about the structure of a cash flow statement, the direct and indirect methods for building one, the working capital concept, the three typical cash flow groups (operational, investing and financing), a handy graphical representation for a wide audience but also some specific situations (how to deal with PPE invoices).

Minimal finance and accounting knowledge
Advanced Excel knowledge (charts)

FP&A Specialists
Young accountants
Managers of all levels and specialties involved in task-forces dealing with liquidity and survival of a company

Section 1 : The cash flow | Actuals 8 Lectures 01:04:25
Lecture 1 :
Part I - Introduction and summary Preview
Lecture 2 :
Part II - The cash-flow statement
Lecture 3 :
Part III - Accruals, performance and solvency
Lecture 4 :
Part IV - Cash flow structure - direct and indirect methods
Lecture 5 :
Part V - Cash flow structure - the details
Lecture 6 :
Part VI - Cash flow structure - completeness
Lecture 7 :
Part VII - PPE - an investment / operational cash flow overlapping problem
Lecture 8 :
Part VIII - Visual representation and wrap-up

How do i access the course after purchase?
It's simple. When you sign up, you'll immediately have unlimited viewing of thousands of expert courses, paths to guide your learning, tools to measure your skills and hands-on resources like exercise files. There’s no limit on what you can learn and you can cancel at any time.
Are these video based online self-learning courses?
Yes. All of the courses comes with online video based lectures created by certified instructors. Instructors have crafted these courses with a blend of high quality interactive videos, lectures, quizzes & real world projects to give you an indepth knowledge about the topic.
Can i play & pause the course as per my convenience?
Yes absolutely & thats one of the advantage of self-paced courses. You can anytime pause or resume the course & come back & forth from one lecture to another lecture, play the videos mulitple times & so on.
How do i contact the instructor for any doubts or questions?
Most of these courses have general questions & answers already covered within the course lectures. However, if you need any further help from the instructor, you can use the inbuilt Chat with Instructor option to send a message to an instructor & they will reply you within 24 hours. You can ask as many questions as you want.
Do i need a pc to access the course or can i do it on mobile & tablet as well?
Brilliant question? Isn't it? You can access the courses on any device like PC, Mobile, Tablet & even on a smart tv. For mobile & a tablet you can download the Learnfly android or an iOS app. If mobile app is not available in your country, you can access the course directly by visting our website, its fully mobile friendly.
Do i get any certificate for the courses?
Yes. Once you complete any course on our platform along with provided assessments by the instructor, you will be eligble to get certificate of course completion.
For how long can i access my course on the platform?
You require an active subscription to access courses on our platform. If your subscription is active, you can access any course on our platform with no restrictions.
Is there any free trial?
Currently, we do not offer any free trial.
Can i cancel anytime?
Yes, you can cancel your subscription at any time. Your subscription will auto-renew until you cancel, but why would you want to?

Daniel Alexandru Petrescu,

290238 Course Views

13 Courses

Holding a MA in Management, a BSc in Accounting and being Fellow of Association of Chartered Certified Accountants (ACCA) UK since 2016, I am also a senior FP&A professional with more than 15 years of experience in sectors such as IT, Financial Services, Banking, FMCG, Gastronomy and Hospitality in companies like Unilever (Bucharest), Erste Group (Vienna), GE Money (Bucharest), Motto Group (Vienna).