Description
SUITABLE FOR:
Managers, Supervisors and Professional staff from finance and non-finance departments who have little or no financial knowledge and who recognise the need for an understanding of the finance function and the financial implications of business decisions.
OBJECTIVES:
By the end of the course, delegates will:
- Understand the importance of financial information and have a greater understanding of financial jargon and terminology.
- Be aware of the key financial statements and how to interpret them and assess a company’s financial strengths and weaknesses.
- Understand the costing process, budgeting and the budgetary cycle.
- Be able to appraise capital projects.
- Be able to make better use of financial information to improve their decision making.
SUMMARY:
A key measure of company success is its level of profitability in relation to capital employed. Since all managers can influence profitability and cash flow, they need to understand how financial performance can be improved. They also need to be able to apply their knowledge for the benefit of their own organisation. The topics covered include:
Day One
Financial Information
- Why do we need financial information?
- Understanding the language of finance, company accounts and annual reports
- Case study
Accounting
- The main accounting principles
- The business cycle and the flow of money in a business
- Business Objectives
Day Two
The Balance Sheet
- The balance sheet statement
- VIDEO – “The Balance Sheet Barrier”
- Purpose and format
- Interpretation
- Management of working capital
Cashflow
- The purpose and format of the cashflow statement
- Interpretation
- The difference between profit and cash
- Cash flow forecasting
- Exercise
Day Three
Profit and Loss
- Purpose and format
- Interpretation
Company Valuation
- The indicators used in company valuation
- Case study
Ratios
- Key financial ratios and how to interpret them
- Exercise
Day Four
Costs
- The costing process – relevant costing
- Cost allocation
- Cost behaviour
- Cost-volume-profit analysis
- Calculating breakeven
- Cost control and reduction
- Exercise
- Budgeting and the Budgetary Cycle
- Case study
Day Five
- Capital Expenditure Appraisal
- Investment appraisal techniques:
- Net Present Value
- Pay back method
- Discounted cashflow
- Exercise
- Depreciation
- Methods of depreciation
