Effective Cash Forecasting

  • Overview
  • Agenda
  • Overview

    Effective treasury management begins with optimised cash forecasting. This course provides a comprehensive understanding of the subject, covering basic and advanced concepts. Attendees will gain insight into the practical aspects of forecasting, including:

    • Policies
    • Templates
    • Improvement opportunities
    • Tools
    • Processes

    Additionally, the course will delve into the skills required internally, optimal organisational structures, and associated project and change management.

    The interactivity and exercises in the training encourage information sharing, providing attendees with a general framework and specific ideas for improving forecasts they can bring back and apply to their companies.

    x Training
  • Learning objectives and who should attend

    Junior to senior levels in treasury and finance 

    • Setting up minimum-acceptable level forecasts for effective cash, liquidity, FX risk and capital structure management.
    • Managing forecasts day-to-day and keeping them relevant in changing business and systems environments.
    • Improving forecasts and the forecasting environment to a level where benefits justify the extra costs and efforts

    Junior to senior suppliers (banks, fintechs, TMS, ERP, Netting and other system providers where cash forecasting is involved)

    • Learn about typical cash forecasting setups in companies
    • Learn about common issues associated with cash forecasting from the trainer and corporate attendees. Hear about their relative importance in different types of companies plus tools and techniques that can help them improve.
    • Link learnings to how products and services can be used, or be developed, to serve customers better. Bring feedback that will be useful to sales, marketing and product management.
    Learning objectives


  • Day 1 down-arrow
    • 9am

      Basics of cash forecasting

      • Importance of cash forecasting in operational and strategic treasury and financial management/accounting
      • Using cash forecasts to manage liquidity, day-to-day and FX risk and capital structure
      • Top-down vs bottom-up forecasting
      • Short and long-term debt structures – financial ratios and tax impacts
      • Time buckets and forecast horizons
      • Relevance of hedge accounting to cash forecast horizons
      • Frequency of forecast updates
    • 10am

      Key components of a cash forecast

      • Comparison and Importance of bank balances, inflows and outflows in different types of companies
      • Sources of information needed to build a cash forecast
      • Importance and objectives of:

      o Reviewing actual balances and cashflows vs forecast
      o Checking actuals vs the accounting cash flow statements
      o Having a formal cash forecasting policy in treasury

    • 10.45

      Refreshment break

    • 11am

      Services typically associated with cash forecasting

      • Pooling and sweeping
      • Netting
      • Cash forecasting systems
    • 11.30

      Using the cash forecast

      • Managing payments and FX, liquidity and FX risk once forecasts are in place
      • Typical hedging instruments used
      • Impact of treasury deals on cashflow forecasts
      • Drivers of minimum cash balance requirements
    • 12.30

      Group discussion

      • Build a cash forecasting policy for an Example Company
    • 1pm


    • 2pm

      Group exercise

      • Build a cash forecast template for an Example Company
    • 3.30pm


    • 3.45pm

      Typical issues associated with cash forecasting

      • Frequently missed inflows and outflows
      • Timing of cash flows
      • Trapped cash
      • Accounting vs actual cash
      • Systems (including forecasting modules in treasury management systems [TMS]) and spreadsheets
      • Transparency and accuracy of source information
      • Contractual issues: Cashflow timing; FX and commodity hedge adjustment clauses
      • Misconceptions associated with pooling and sweeping, and netting
      • Not keeping up effectively with business change
    • 4.45pm

      End-of-day discussion

      • Adjustments needed to cash forecasting policies and templates
    • 5pm

      End of Day 1

  • Day 2 down-arrow
    • 8.30

      Recap Day 1 (optional)

    • 9am

      Sophistication in cash forecasting

      • Payment runs, including optimal frequency of runs
      • Corporate cards and wallets
      • Direct debits and e-invoicing
      • Forecasting for specific events
      • Review of contract terms
      • Self-billing systems
      • Customer relationship management, supply chain, inventory and HR management systems
      • Trend analysis and rules-based forecasting
      • ML/AI
      • Black swan events
      • Group cash forecasting policies
      • Stakeholder partnering
      • 3rd party netting
      • Reinvoicing and centralised invoicing
    • 11am

      Refreshment break

    • 11.15

      Internal & external partnerships

      • Processes required for effective partnering
      • Skills needed for effective in-house partnering
      • Skills required for effective 3rd party partnering, including with customers and suppliers
      • Treasury organisation structures for effective partnering
    • 12.30

      Group discussion

      • Adjustments needed to cash forecasting policies and templates
    • 1pm


    • 2pm

      Group discussion

      • Applying the adjustments to the Example Company’s Day 1 policy and template
    • 2.30pm

      Practical requirements

      • Practical requirements for Example Company to become more sophisticated
      • Sensible timing of improvements
      • Project management approaches
      • Change management approaches
    • 3.30pm


    • 3.45pm

      Group discussion

        • What improvements are possible in the attendee companies
        • What are the practical requirements
        • How could supplier attendees’ companies and others help
    • 4.45pm

      Attendees’ s summary of learnings

    • 5pm

      End of Day 2


Nicholas Franck

EuroFinance Tutor EuroFinance

Nicholas (‘Nick’) Franck has worked 30+ years in corporate treasury, trading, transaction banking, and treasury consultancy: 19 years in multi-industry corporates (IBM, International SOS, Agility Logistics and Oriflame Cosmetics;) 7 years in banks (Merrill Lynch and Chase Manhattan;) 6 years in treasury consultancy (CFO Solutions.) In these companies, his work has been mainly on startups and change. He has worked in and advised on technology, processes, outsourcing, treasury functions & treasury centres, worldwide. His expertise covers cash, liquidity, working capital, risk management, TMS and other systems, policy and process change within a business’s broader finance and commercial context. His in-depth knowledge makes him a versatile, convincing and compelling trainer.

Nicholas Franck


Virtual training VAT rules:

UK 20% VAT is chargeable if the participants are based in the UK or EU-based but non-VAT registered.

Course timing:
This virtual course will be run from 1pm-5pm GMT over 4 days (February 27th, 28th, March 1st and 2nd).