Finance for Non-Finance Managers
Self-Learning Course Info
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Course Details
Introduction
Objective
Who should attend
Ever wondered how your management decisions affect your company’s financial performance? Or how to easily read and analyze financial reports to make smarter decisions?
This Finance for Non-Finance Managers 5-day course will teach you how to decode financial reports, understand the language of numbers, and use tools like budgeting and cost analysis to improve your company’s performance.
How can financial statements guide your strategic decisions? Join us to find out and learn how to turn financial data into actionable insights for success!
Self-learning Course Outline
Self-learning Course Content
Part 1
The Nature and Purpose of Finance and Accounting
- A basic model of an organisation’s financial framework
- Understanding the accounting process
- The five primary accounts in financial reports
- Income statement: a tool for assessing performance
- Accrual basis vs cash basis
- Balance sheet: a tool for evaluating financial standing
- The balanced condition
- Statement of owners’ equity
- Statement of cash flows: cash is vital
- Conclusion: the flow of financial statements
- Responsibilities of external and internal auditors
Part 2
Analysis of Financial Statements
- Why are ratios beneficial
- Horizontal and trend analysis
- Vertical analysis: common-size reports
- Building blocks analysis and interpreting the figures:
- Liquidity ratios: ability to settle short-term obligations
- Solvency ratios: capacity to settle long-term obligations
- Activity ratios: efficiency in managing assets
- Profitability ratios
- Limitations of Financial Ratio Interpretation
Part 3
Working Capital Management
- Defining working capital and its management
- Strategies for managing current assets in working capital
- Balancing profitability and cash flow
- Strategies for managing current liabilities
- The trade-off between profitability and stability
The Concept of Financial Management
- Accounting vs finance: principles and duties
- Three main areas of finance:
- Financing decisions
- Investment decisions
- Operational decisions
Part 4
Breakeven Analysis and Decision Making
- Identifying fixed costs
- Identifying variable costs
- Contribution margin equation
- Calculating the breakeven point
- Sensitivity analysis: altering assumptions
Operating Budget Process and Techniques
- What is an operating budget
- Stages of budget creation
- Master budget components
- Sales projection
- Approaches to budgeting
- Incremental budgeting
- Zero-based budgeting
- Budget control and adjustments
Part 5
Capital Budgeting: The Investment Decisions
- Examples of capital budgeting exercises
- Time value of money: a necessity for investment decisions
- Required return rate for investments
- Examples of cash outflows for capital projects
- Examples of cash inflows for projects
- Net present value calculation
- Internal rate of return
