INTRODUCTION FOR FINANCE FOR NON FINANCE MANAGERS
In today’s changing business conditions and intense competition, there is a need for all functional or business heads to grasp, understand and apply fundamentals of financial accounting knowledge in respective areas or business units to be all rounded professional managers. Moving forward, most functional and business managers are expected are deemed ‘owners’ of the profit & loss numbers!
By acquiring this skills, this will enable them to better understand and analyses financials statements, contribute effectively in the budgeting process and makes effective decision in investment and project selection. This programme will highlight methods used by finance function which are relevant today for management decision support.
Who should attend: Professionals, Senior Managers, Managers, Senior & Junior Executives who had no formal training in accounting & finance but wish to understand and interpret financial statements and enhance financial management & valuation competencies.
COURSE OBJECTIVES
On completion of the programme, participants will be able to:-
- Master the interpretation of financial statements
- Identify key financial concerns via variance analysis
- Know how to analyse and evaluate key financial indicators in view to contribute towards improving organisation’s performance
- Understand the concepts, language and basic rules of accounting & finance and types of ratios for decision making.
- Equip oneself with knowledge in order to effectively manage a business organization.
COURSE CONTENT
Day 1: Part 1 Introduction to Finance Accounting & Finance Analysis
Building Financial Knowledge:
- Financial Terminology
- Practical understanding of finance and accounting concepts
(Asset, liabilities, accruals, income, expenses, depreciation, prepayment)
Understanding financial statements
Types of financial statements: Profit & Loss, Cash Flow, Balance Sheet & its importance
Evaluate business performance and viability through:
- Profit margins & trends
- Return of Investment (ROI), Gearing & liquidity ratios
Application of techniques to evaluate company’s financial health via Profit and Loss Account, Balance Sheet and Cashflow statement.
Golden rules of financial management for Companies and Personal Finance
- Ten Tips for Managing Cash Flow for Companies
- Understanding operating cash flow by work capital management
- Working Capital Management definition and its importance in cash flow management.
- Differentiate profit versus cash.
Day 1: Part 2 Understanding Cost
Introduction
- Cost element classification
- How cost is estimated
- Cost method and structure
- Cost drivers and impact on budget setting and reporting variances
Management reporting : Variance Analysis
- Understanding essentials of variance analysis & how variances are calculated.
- What causes budget variances?
Day 2 : Part 1: Budgeting, Planning & Forecasting
- Explore budgeting, planning & forecasting process and its importance
- Bases of annual operating plan (budget)
- Types of budgets preparation.
- Capital Expenditure and Revenue Expenditure Concepts.
- Understanding of fixed cost and variable cost for cost drivers analysis
- Budget Format & development process
- Accountability: Explore budgetary slack and goal congruence concept
- Examples of budget format preparation
- Top Down vs Bottoms Up Concept.
Day 2: Part 2: Evaluate project investment
- Apply key ratio analysis on project financials.
- Accepting and rejecting projects.
- Activity exercises.
