AAT – Cash and Financial Management

This course emphasizes the crucial role of cash management within organizations and equips students with the necessary skills to make informed financing and investment decisions that align with organizational policies and external regulations.

Students will learn to identify current and future cash transactions from various sources and how to exclude non-cash items from financial data. They will use different techniques to prepare cash budgets that account for the timing of cash flows, monitoring cash entering and exiting the organization.

The course underscores the importance of effectively managing cash to ensure organizational sustainability. Students will identify and address cash shortfalls and surpluses, learn to reforecast budgets, and understand the reasons for budget deviations.

Additionally, students will explore various financing options available to meet both short-term and long-term financial needs and the types of investments suitable for managing surplus funds. They will also gain insights into external regulations that influence financial decisions to ensure compliance with broader organizational principles, which extend beyond mere wealth maximization.

This course is an optional part of the Level 4 Diploma in Professional Accounting.

Learning Outcomes:
On successful completion of this subject, you should be able to:

1. Prepare forecasts for cash receipts and payments
2. Prepare cash budgets and monitor cash flows
3. Understand the importance of managing finance and liquidity
4. Understand ways of raising finance and investing funds
5. Understand regulations and organisational policies that influence decisions in managing cash and finance