Finance for Non-Finance Managers

Finance for Non-Finance Managers

Sunday 01 Nov 2020

  • Duration: One Week
  • City: Dubai 
  • Fees: Classroom: 4200 GBP / Online: 1900 GBP

Overview

This five days course is designed to help managers understand how the decisions they make will affect the financial performance of their organization. The materials and activities are designed to help you demystify the jargon of finance and to understand and use a range of different financial techniques to improve your abilities as a manager. You will look at the different financial reporting statements and financial measures to improve performance. You will learn about different mechanisms of costing and financial methods such as budgeting to assist in planning and controlling performance. Throughout this course, you will be asked to relate your studies to your own work context. It will also give you an understanding of the language used by accountants and how financial statements fit together. It will explain, in a practical way, the financial statements of an organization and how to read and understand them plus basic accounting concepts such as depreciation, cost behaviour, cash flow, working capital, and budgeting.

Learn Objectives

By the end of this course you will be able to:

  • Explain the purpose of the three key financial statements ‘Income Statement, Statement of Financial Position, and Cash Flow Statement’.
  • Define the four key financial statements: balance sheet, income statement, cash flow and changes in owner equity as well as key financial terms such as profit, margins and leverage used in organizations
  • Interpret the financial health and condition of a company, division or responsibility centre and use financial information for management and evaluation
  • Distinguish between accounting and finance and explain the finance role in running businesses
  • Prepare a company’s operating budget and relate it to the organization’s strategic objectives
  • Apply capital budgeting techniques and cost-volume-profit analysis to enhance decision making
  • Demystify the rules of capital expenditure vs operational expenditure helping you to justify investments to your senior managers and finance team.
  • Simply assess the viability of entering new markets or developing new products.

Who should attend?

  • Non-finance professionals at all levels who need to develop an understanding of business finance.
  • All staff within a business, company, partnership or charitable organisation should have an understanding of finance in order to contribute to their organisation’s success.

Course Content:

Day 1:

 The Nature and Purpose of Finance and Accounting

  • A simple model of an organisation’s accounting framework
  • Understanding the accounting cycle
  • The five main accounts in financial statements
  • Income statement: a tool for performance measurement
  • Accrual basis versus cash basis
  • Balance sheet: a tool for financial position
  • The balanced status
  • Statement of owners’ equity
  • Statement of cash flows: cash is king
  • Wrapping-up: the cycle of financial statements
  • External and internal auditors’ responsibilities

Day 2:

 Analysis of Financial Statements:

  • Why are ratios useful
  • Horizontal and trend analysis
  • Vertical analysis: common size statements 
  • Building blocks analysis and reading through the numbers:
  • Liquidity ratios: ability to settle short-term dues
  • Solvency ratios: ability to settle long-term dues
  • Activity ratios: the ability to manage assets efficiently
  • Profitability ratios
  • Limitations of financial ratio analysis

 Day 3:

Working Capital Management:

  • Definition of working capital and working capital management
  • Working capital management strategies for current assets
  • Balancing profitability and liquidity
  • Working capital management strategies for current liabilities
  • Trade-off between profitability and certainty
  • The Concept of Financial Management:
  • Accounting versus finance: rules and responsibilities
  • Three pillars of finance:
    • Financing decisions
    • Investing decisions
    • Operating decisions

Day 4:

 Breakeven Analysis and Decision Making:

  • Defining fixed costs
  • Defining variable costs
  • Contribution margin formula
  • Computing breakeven point
  • Sensitivity analysis: changing assumptions
  • Operating Budget Process and Techniques:
  • What is an operating budget
  • Steps to budget development
  • Master budget components
  • Sales forecasting
  • Approaches to budgeting
  • Incremental budgeting
  • Zero-based budgeting
  • Budgetary control and correction

Day 5:

 Capital Budgeting: The Investing Decisions:

  • Examples of exercises involving capital budgeting exercise
  • Time value of money: a prerequisite for investing decisions
  • Required rate of return for investments
  • Examples of cash outflows for capital projects
  • Examples of cash inflows for projects
  • Net present value calculation
  • Internal rate of return
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