Summary
Maintaining financial acumen for any business is crucial for its success. Executives and other senior positions need to be able to communicate the current state of finances with other employees with financial control effectively.
A non-finance manager developing the skillset required to manage finances is extremely beneficial for a business and themselves. Being able to swiftly comprehend the financial information provided will keep productivity moving effectively. The financial information can be processed, and immediate action can be taken which is essential, especially in emergency situations. Having all managers within an organisation be competent at reviewing and creating financial documents will remove any potential miscommunication issues or confusion and will nullify any time possibly needed to explain what is being communicated.
To maintain success for an organisation, it is important to have monthly cashflow statements, balance sheets, and income statements. Creating documents discussing budgets for departments or projects that can be understood by those in charge will allow more freedom when it comes to production. Having more financial control and knowledge can aid in higher accuracy when completing tasks.
- To explain the purpose of key financial statements.
- To interpret the financial health of an organisation.
- To define key financial terms used in organisations.
- To utilise financial information for management and elevation.
- To distinguish the difference between accounting and finance.
- To prepare a company’s operating budget and align it with its strategic objectives.
- To apply capital budgeting techniques and cost-volume-profit analysis to enhance decision-making.
- To explain the rules of capital expenditure versus operation expenditure to aid in justifying investments.
- To appropriately assess the viability of entering new markets.
This course is designed for anyone who possesses a limited understanding of finances and requires developing their skills for their current role or future positions. It would be most beneficial for:
- Project Managers
- Office Managers
- Administrative Officers
- Marketing Directors
- Advertising Managers
- Regional Managers
- Sales Directors
- Business Owners
- Planning Managers
- Asset Managers
This course uses a variety of adult learning styles to aid full understanding and comprehension. Participants will review real-world financial documents, such as cash flow and income statements, to highlight what key data needs to be included and any possible discrepancies.
Being provided with these examples of financial statements will help the participants further develop their insight into the subject, as they can apply their learned knowledge to true documents. They will later go on to create their own financial documents for their respective roles to ensure they have a comprehensive understanding. In groups, participants will share their statements with others to allow them to practice communicating the information.
Course Content & Outline
- Understanding the accounting cycle.
- The five main accounts in financial statements.
- Income statement – a tool for performance measurement.
- Balance sheet – a tool for viewing financial position.
- Accrual basis versus cash basis.
- External and internal auditor’s responsibilities.
- The importance of ratios and analyses.
- Horizontal, vertical, and trend analysis.
- Building blocks analysis and understanding the numbers.
- Liquidity ratios – the ability to settle short-term dues.
- Solvency ratios – the ability to settle long-term dues.
- Activity ratios – managing assets effectively.
- Probability ratios.
- Limitations of financial ratio analysis.
- Defining working capital and working capital management.
- Working capital strategies for current assets.
- Balancing profitability with liquidity.
- Working capital strategies for current liabilities.
- Rules and responsibilities of accounting versus finance.
- Making financing decisions and accepting responsibility.
- Understanding the most beneficial investing decisions.
- Making effective operating decisions.
- Defining fixed and variable costs.
- Contribution margin formula.
- Calculating the breakeven point.
- Sensitivity analysis – changing assumptions.
- Defining an operating budget.
- Steps to budget development.
- Components that influence the budget.
- Sales forecasting.
- Budgetary control and correction.
- Incremental and zero-based budgeting.
- Analysing the time value of money.
- Required rate of return for investments.
- Cash outflow and inflow statements for projects.
- Net present value calculation.
- Internal rate of return.
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