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Institute of Advanced Technological and Commercial Studies

Glossary

Cash position: the money genuinely available

Cash is the money the company has right now. A profitable activity and a tight cash position coexist very comfortably: what governs is the gap between money coming in and money going out. The cash plan aligns expected receipts with committed payments.

Profitability and cash, two questions

Cash refers to funds immediately available. It is steered through a monthly plan that aligns expected receipts with committed payments. The gap between the two creates the working capital requirement: inventory is paid for before it is sold, the customer settles after delivery. That gap, more than profitability, decides whether a young company survives.

  • The cash plan aligns receipts and payments, month by month
  • The gap between them creates the working capital requirement
  • A profitable activity is still steered by its cash

The cash plan, month by month

The Entrepreneurship programme has candidates build a twelve-month cash plan and puts it through scenarios: a customer paying thirty days late, an order that doubles. The Business Management programme approaches it from day-to-day steering, with the levers of customer and supplier terms.

Receipts

What comes in, on the date the customer actually pays, not the invoice date.

Payments

What goes out: suppliers, wages, contributions, taxes, loan repayments.

Working capital requirement

The money tied up by the cycle: inventory held and receivables awaiting settlement.

The levers

Negotiated terms, deposits on order, inventory turnover: three moves that free up cash.

Programmes that have you steer cash

2 catalogue programmes put “Cash position” to work: 240 credits and 2400 taught hours in total. The official rule holds throughout — one credit stands for 25 hours of work, 10 of them taught. Every line below is recomputed from the programme page: level, duration, credits, taught volume and fees in Guinean francs appear exactly as filed in the official catalogue.

ProgrammeLevelDurationVolumeFees
EntrepreneurshipBachelor's degree18 months60 credits · 600 taught hours4 400 000 GNF per year
Business Management programme — Bac+3 levelBachelor's degree3 years180 credits · 1800 taught hours4 800 000 GNF per year

“Cash position” in practice

Why can a profitable company be short of cash?

Because profit is recognised at invoicing and cash at settlement. In between, inventory and receivables tie the money up.

Over what horizon is a plan built?

A rolling twelve months for steering, week by week over tight periods, revised at every significant receipt.

Which levers act fastest?

Deposits on order, organised customer follow-up and inventory turnover: three moves that show an effect within weeks.

Cash position: the money genuinely available — Glossary | IHETC — IHETC