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Erudite AfricaCenter of Excellence
← Financial Management for SMEs: Financial Control and Decision Making

Cash Flow Management

Module 01 / 6 · 65 min · Free preview

See why a profitable business can run out of cash, forecast cash week by week for 13 weeks, and free cash from receivables, stock and payables.

In this module you will learn to

  • Explain the difference between profit and cash and build a profit-to-cash bridge for a month
  • Calculate the cash conversion cycle from receivable, inventory and payable days
  • Build a 13-week cash forecast that includes tax, pension and loan payment dates, and find the lowest week
  • Choose working capital actions that close a forecast gap without breaking the law or a relationship

Built on

  • Erudite Africa training curriculum: Financial Management for SMEs, Level 2 Intermediate, Financial Control and Decision Making (October 2026)
  • Financial Reporting Proclamation No. 847/2014 and the Accounting and Auditing Board of Ethiopia (AABE) adoption of IFRS for SMEs; Commercial Code Proclamation No. 1243/2021
  • Federal Income Tax Proclamation No. 979/2016 as amended by Proclamation No. 1395/2025, and Council of Ministers Income Tax Regulation No. 410/2017 (depreciation rates)
  • VAT Proclamation No. 1341/2024, VAT Registration Directive No. 1104/2025 and Electronic Invoicing System Administration Directive No. 1142/2026
  • Federal Tax Administration Proclamation No. 983/2016 as amended by No. 1434/2026; Private Organization Employees' Pension Proclamation No. 1268/2022; Labour Proclamation No. 1156/2019
  • Published good practice on 13-week cash forecasting, working capital management, management accounts and spreadsheet controls

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.