Finance and Cash Flow Management: Key Strategies

Finance and cash flow management are essential components of a business's financial health and success. Finance encompasses the strategic planning, allocation, and control of financial resources to optimize business performance and sustainability. One critical aspect of financial management is cash flow management, which revolves around monitoring and optimizing the flow of cash within an organization. Cash flow management is essential for maintaining liquidity, ensuring that businesses can meet short-term obligations such as payroll, supplier payments, and operational expenses. From budgeting techniques and financial analysis to cash flow forecasting and working capital management, we will equip ourselves with actionable insights to enhance financial resilience and drive sustainable growth.

1. Finance and Cash Flow Management Being a Lecture Paper Presented on Sunday, May 12, 2024 . Prof. Godwin Emmanuel Oyedokun Professor of Accounting and Financial Development Department of Management & Accounting Faculty of Management and Social Sciences Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors)

2. ND (Fin), HND (Acct.), BSc. (Acct. Ed), BSc (Fin.), LLB., LLM, MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Bus & Econs ), MSc. (Fin), MSc. ( Econs ), Ph.D. (Acct), Ph.D. (Fin), Ph.D. (FA), CICA, CFA, CFE, CIPFA, CPFA, CertIFR , ACS, ACIS, ACIArb , ACAMS, ABR, IPA, IFA, MNIM, FCA, FCTI, FCIB, FCNA, FCFIP, FCE, FERP, FFAR, FPD-CR, FSEAN, FNIOAIM, FCCrFA , FCCFI, FICA, FCECFI, JP Prof. Godwin Emmanuel Oyedokun Professor of Accounting and Financial Development Department of Management & Accounting Faculty of Management and Social Sciences Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors)

3. Finance and Cash Flow Management

4. Contents

5. Introduction

6. Overview of Finance

7. Overview of Finance

8. Sources of Finance

9. Key Concepts in Finance

10. Functions of Finance

11. Components of Finance

12. Overview of Cash Flow

13. Importance of Cash Flow Management

14. Source Amount (N) Description Sales Revenue N100,000 Revenue generated from product sales Accounts Receivable N20,000 Cash received from customers for credit sales Investments N5,000 Proceeds from the sale of short-term investments Total Cash Inflows N125,000 Total cash received during the month Cash Flow Management Illustration: OGE Period Covered: January 2024 Cash Inflows : Cash Outflows: Expense Amount (N) Description Cost of Goods Sold (COGS) N50,000 Cost of producing or purchasing goods sold Operating Expenses N30,000 Expenses incurred in day-to-day operations Accounts Payable N15,000 Payments made to suppliers for goods and services Loan Payments N5,000 Monthly loan installment payment Other Expenses N10,000 Miscellaneous expenses Total Cash Outflows N110,000 Total cash spent during the month

15. Net Cash Flow: N125,000 (Total Cash Inflows) - N110,000 (Total Cash Outflows) = N15,000 Opening Cash Balance: N50,000 (Beginning of January) Closing Cash Balance: N50,000 (Opening Cash Balance) + N15,000 (Net Cash Flow) = N65,000 (End of January) Cash Flow Analysis: In January 2024, OGE generated N125,000 in cash inflows primarily from sales revenue and accounts receivable collections. The company also received N5,000 from the sale of short-term investments. On the expenditure side, OGE incurred N110,000 in cash outflows, including costs of goods sold, operating expenses, accounts payable payments, loan payments, and other miscellaneous expenses. As a result, OGE achieved a positive net cash flow of N15,000 for the month. This positive cash flow contributed to an increase in the company's closing cash balance from N50,000 at the beginning of January to N65,000 at the end of January . By effectively managing cash inflows and outflows, OGE maintained financial stability and liquidity, enabling it to meet its financial obligations and support ongoing business operations.

16. Budgeting

17. Cash Flow Forecasting

18. Build an Emergency Fund

19. Key Strategies for Cash Flow Management

20. Importance of Cash Flow Management

21. Best Practices for Sustaining Healthy Cash Flow

22. Nexus between Finance and Cash Flow Management

23. Nexus between Finance and Cash Flow Management

24. Conclusion

25. Recommendations

26. Prof. Godwin Emmanuel Oyedokun Professor of Accounting & Financial Development Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors) [email protected]; [email protected] [phone] & 2348055863944