CONTROLLING AND CASH FLOW MANAGEMENT

Objective

Equip employees of companies entering the Hungarian market with in-depth knowledge of financial controlling and cash flow management. The training will provide both theoretical understanding and practical tools, enabling participants to efficiently manage financial operations in Hungary.

overview

1. Understanding Financial Controlling

1.1 Introduction to Financial Controlling

Content: Overview of the controlling function in Hungary and its relevance in a cross-border context. Differences between accounting and controlling, key roles of a financial controller, and interaction with other departments (e.g., HR, procurement, and sales).


Importance: Understanding the scope and duties of controlling is crucial for managing the financial health of the company in Hungary, ensuring compliance, and aligning operations with strategic goals.

1.2 Key Financial Statements for Controllers

Content: Detailed walkthrough of balance sheets, income statements, and cash flow statements. Practical examples of interpreting these financial documents for decision-making.


Importance: Controllers must be proficient in reading and analyzing financial statements to offer actionable insights and align corporate goals with financial health.

1.3 Budgeting and Forecasting

Content: Best practices in budgeting and forecasting specific to the Hungarian financial landscape. Techniques to create realistic forecasts and set financial KPIs.


Importance: Accurate budgeting and forecasting are vital for anticipating financial needs and setting clear business objectives, thus reducing financial risks.

1.4 Variance Analysis: A Key Controlling Tool

Content: Explanation of variance analysis and its application in monitoring financial performance. Emphasis on cost, sales, and profit variances.


Importance: Variance analysis allows controllers to identify discrepancies between forecasts and actual results, enabling better decision-making.

2. Cash Flow Management

2.1 Cash Flow Fundamentals and Importance

Content: The concept of cash flow, its importance in business continuity, and the difference between cash flow and profit. Understanding operational, investment, and financing cash flows.


Importance: Effective cash flow management ensures liquidity and enables companies to avoid insolvency while maintaining operational efficiency.

2.2 Cash Flow Statement Analysis

Content: In-depth session on preparing and analyzing cash flow statements. Understanding how to extract cash flow-related information from financial statements and manage working capital efficiently.


Importance: Mastery of cash flow statements is essential for maintaining liquidity and ensuring that the company can meet its short-term obligations.

2.3 Cash Flow Forecasting

Content: Techniques for forecasting cash flow, including direct and indirect methods. The importance of cash flow projections in financial planning, particularly for multinational operations in Hungary.


Importance: Accurate forecasting of cash flows helps companies anticipate financial challenges and ensures that resources are allocated effectively.

2.4 Cash Flow Optimization Techniques

Content: Practical strategies for optimizing cash flow, such as managing accounts receivable/payable, inventory management, and supplier payment terms. How to leverage credit lines and manage currency exchange risks in Hungary.


Importance: Optimizing cash flow is critical for maintaining a company’s financial flexibility and minimizing operational disruptions in Hungary.

3. Integration of Controlling and Cash Flow Management

3.1 Integrating Cash Flow with Controlling

Content: Linking cash flow management with controlling processes. The role of cash flow analysis in budget variance and financial decision-making.

 

Importance: An integrated approach ensures that financial controlling informs cash flow strategies and vice versa, optimizing overall financial health.

3.2 Controlling Reports and Cash Flow Statements for Decision-Making

Content: How to present financial information to management for strategic decisions. Focus on customizing reports for different stakeholders (e.g., CEOs, CFOs, department heads).


Importance: Tailored financial reporting ensures that management can make informed decisions that align with corporate objectives and liquidity requirements.

3.3 Hands-on Workshop: Real-World Case Study

Content: Participants will work in groups on a Hungarian company case study involving cash flow and controlling issues, making financial recommendations based on real-world data.


Importance: This hands-on session will solidify the theoretical knowledge and give participants confidence in applying their skills in real-world situations.

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