Finance for Non-Finance Professionals
Finance for Non-Finance Professionals
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Program Objectives:
By the end of the program, participants will be able to:
- Explain the functions of financial management and its role in running businesses.
- Communicate effectively with finance professionals by using common financial language.
- Define the four key financial statements: balance sheet, income, cash flow and changes in owners’ equity as well as key financial terms used in organizations (e.g. profit, margins, leverage, etc.)
- Interpret the financial health and condition of a company, division or responsibility center.
- Apply capital budgeting techniques and cost- volume-profit analysis to enhance decision making.
- Use financial information to manage and evaluate their company or department operations.
Who should attend:
Managers, supervisors and staff from any function including finance who need to improve understanding and use of financial information.
Program Outline
Concept of Financial Management
- Accounting versus Finance: Rules and Responsibilities
- Three Pillars of Finance
- Financing Decisions
- Investing Decisions
- Operating Decisions
The Key Financial Statements
- Understanding the Accounting Cycle
- The Six Main Accounts in Financial Statements
- The Cycle of Financial Statements
- Income Statement
- Owners’ Equity
- Balance Sheet
- Cash Flow Statement and Cash Flow Rules
Annual Reports, Auditors’ Opinion and Financial Disclosures
- Mapping the Three Pillars of Finance to Financial Statements
- Analysis of Financial Statements
- Judging the Health of the Business
- Vertical, Horizontal, and Trend Analysis
- Income Statement Ratios
- Balance Sheet Ratios
- Analyzing and Interpreting Company Annual Reports
- Different Measures of Profitability
- Reading through the Numbers
- Working Capital and the Financing Decision
- Why Manage Working Capital?
- Current Asset Classification
- The Trade-Off in Working Capital Management Strategies
- Sources of Short-Term Financing
- Balancing Profitability and Liquidity
Budgeting Process and Techniques
- Importance of Budgeting
- Main Methods in Budgeting
- Incremental Budgets
- Zero-Based Budgeting
- Activity-Based Budgeting
- Participative Budgeting
- The Budgeting Process
- Budgetary Cost Control
Capital Projects
- Time Value of Money
- The Capital Budgeting Decision
- Methods in Evaluating Capital Projects
- Net Present Value and Internal Rate of Return
Break-Even Analysis and Decision-Making
- Understanding Break-Even Analysis
- Fixed and Variable Cost Behavior
- Decision-Making Using Contribution Margin
