Finance for Non-Finance Professionals
DATE
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LOCATION
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Why Attend?
Knowledge of basic financial principles is critical to succeeding at any employment level and position. 'Finance for non-Finance Professionals' transforms financial and accounting concepts into decision-making tools you can use successfully every day. You will learn to apply the fundamentals of finance to improve budget management, increase potential profits, and assess the financial performance of business activities. You will also understand the terminology used by accounting and finance staff and feel more confident when involved with them or using them. This course will improve your performance and prepare you for senior management positions where financial awareness is crucial.
Course Objectives
- This Course Objective Hasn't Been Provided Yet
Target Audience
Managers, supervisors and staff from any function including finance who need to improve their understanding and usage of financial information.
The Key Financial Statements
- 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: Why cash is king
- Wrapping-up: The cycle of financial statements
- External and internal auditors’ responsibilities
Analysis of Financial Statements
- Why ratios are 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: Ability to manage assets efficiently
- Profitability ratios
- Limitations of financial ratio analysis
- Working capital management
- Definition of working capital and working capital management
- Various working capital management strategies
Operating Budget Process and Techniques
- The meaning of an operating budget
- Steps to budget development
- Master budget components
- Sales forecasting
- Approaches to budgeting
- Incremental budgeting
- Zero-based budgeting
- Budgetary control and correction
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 (RRRI)
- Examples of cash outflows for capital projects
- Examples of cash inflows for projects
- Net Present Value (NPV) calculation
- Internal Rate of Return (IRR)
Cost Behavior Concepts and Breakeven Analysis
- Defining fixed costs
- Defining variable costs
- Contribution margin
- Computing breakeven point
- Sensitivity analysis: changing assumptions
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