Finance for non-finance managers
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Participants will be engaged in practical, case-driven learning experience, looking at the terminology and principals of finance – financial accounts, management accounts, budgeting and information used for decision-making
Cut through the jargon, get some sense on the numbers, make informed decisions. This sums up the key learning outcomes of this two-day program. Regardless of our role within a firm, decision-makers and their teams are gathering, filtering and analysing financial information in daily tasks. It may be simple cash budget , or a more sophisticated investment project to be aligned to shareholder value.
This, applied, case-driven program will help delegates make sense of commonly presented jargon, and demonstrate the usefulness using cases and exercises. The program will link financial performance to business operations, helping make sense of how the numbers are presented in the Income Statement (P&L), cash flow statement, and balance sheet.
Delegates will also explore how and why management accounts, as well as financial accounts, are prepared, and how you can make informed, value-added financial decisions that speak the language of the finance-people and business leaders.
Have you ever wondered how businesses are valued? Understand that, and you will see why financial information presents the clues and information that matter to shareholders and directors.
Managers at every level, managing teams or not, need to understand commonly used financial terms, presentation and appraisal to allow them to navigate and use business finances with confidence. Key topics covered.
- The primary financial statements – their composition and inter-relationship
- Cash vs profit – the categories of cash and what it means. Why cash is not profit!
- Commonly used terminology and its context / application
- Evaluating financial performance from financial statements
- The need for management accounts
- Cost classification and budgeting
- Relevant cash flows and key project appraisal techniques
- How are businesses valued?
A balanced scorecard for evaluation projects and businesses - the linking of performance measures.
Who should attend?
This one-day course has been designed to appeal to the following professionals:
- General business managers
- Project managers
- Non-finance decision makers
- Department and team heads
- Marketing. IT, Operations, HR, Sales
- Presenters of financial budgets
- All those individuals responsible for decision making with any financial consequence
- Anyone who wants to better understanding of all aspects of finance
Intro and overview of financial information
- The role of finance and the various stakeholders
- Financial reporting – what it includes, what it excludes
- Financial statements – the primary statements and their inter-relationship
- Income Statement and key layers of profit
- Balance sheet - the 4 headings
- How and why profit is not the same as cash – some examples and illustrations
- CASE STUDY
Focus on cash-flows
- Reconciling cash to profit
- Why cash flow needs to be analysed separately
- The reconciliation of the income statement to the cash flows – Indirect vs direct presentations
- Key operational aspects: investment in working capital and capex
- The interpretation and identification of layers of cash flow
...and management accounts and budgeting
- Financial vs management accounts
- Cost types & behaviours and their impact on decisions
- Direct vs indirect
- Fixed and variable
- How costs are measured and determined for records
- Standard, marginal, absorption costing and Activity based Costing (ABC)
- How allocation methods can lead to incorrect decisions
- Forecasting and budgetary control, variance analysis
- CASE STUDY
Evaluating a project and a business
- Definition and key steps in the process
- Who are the stakeholders and what do they want?
- All things considered
- Costs vs benefits
- What are relevant costs / benefits?
- Risk evaluation and measurement
- Real options and how to allow for them
- Appraisal techniques
- Simple ROI
- NPV and the cost of capital
- IRR making things comparable IRR vs WACC
- CASE STUDY
Financial analysis framework – and the balanced scorecard concept
- How to measure value – in principle and practice
- Key measures of performance
- Liquidity and working capital efficiency
- Leverage / financial risk
- Investor ratios and value added
- The link from financial ratios to value creation
- The balanced scorecard – measures that drive performance
- What are they and what works for my business?
- CASE STUDY