Target Audience
This program is ideal for those who recognize that to further their careers, they would benefit from a greater understanding of how the financial side of their business operates.
It is specially designed for those who are not working in a finance or accounting role, and for those who work in the sector, but have never had any formal training.
It will be extremely useful for managers, sales and marketing personnel, account managers, and executives, as it gives them the financial knowledge and insight to make more informed business decisions and become more effective in their current roles.
Overview:
All employees can be more productive if they have a clear understanding of the financial and commercial considerations that impact their business. This course is designed to fill the financial knowledge gap in a fast-moving, interactive format that focuses on acquiring the practical skills of business finance.
The jargon, conventions, and formats of accounting are translated into simple, easy-to-understand language. Upon completion of the course, delegates will feel more comfortable using financial terms, have a clearer understanding of what these terms mean, and most importantly, how they impact on the bottom line of any business.
Case studies and practical exercises form an important part of this program. These are reinforced by trainer-led discussions.
Course Objectives
The program focuses on the following objectives:
1. Understand and interpret a basic Profit and Loss Statement (Income Statement).
2. Understand and interpret a basic Balance Sheet.
3. Understand the concept of Accrual Accounting and how it differs from Cash Accounting.
4. Understand Depreciation and Amortization.
5. Understand a simple Cash Flow Statement.
6. Assess ways of improving Working Capital.
7. Understand how to use Ratios to analyze a business.
8. Understand the different types of Costs (fixed / variable / semi-variable and direct / indirect).
9. Learn how to use Break-Even Analysis.
10. Understand different sources of business financing.
11. Understand different budgeting techniques.
12. Use Variance Analysis to assess budget performance.
13. Apply and assess the merits of key Investment Appraisal Techniques – Return on Investment (ROI).
14. Evaluate the importance of non-financial factors affecting investment decisions.
Course Outline
Day One:
- Understanding Key Financial Statements.
• The Profit and Loss Statement.
• The Balance Sheet.
• Cash Flow Statement And Forecast.
- Understanding Income And Expenses Statement.
- Gross Profit, Cost of Goods Sold, and Net Profit.
- Accrual-Based accounting.
- Distinguishing between Fixed and Current Assets, Current and Long-Term Liabilities, and Equity.
- Depreciation and Amortisation.
- Causes of Insolvency.
- Ways to improve working Capital and Cash Flow.
Day Two:
- Ratio Analysis.
• Profitability ratios.
• Liquidity ratios.
• Efficiency ratios.
• Financial risk ratios.
- Horizontal and Vertical (Sizing) Analysis.
- Cost Types.
• Fixed and variable expenses.
• Direct and indirect expenses.
- Break-even analysis.
- Pricing strategies.
- Markup vs Gross Margin.
- Upselling and Cross-Selling.
- Budget Basics and Budget Review (Variance Analysis).
Day Three
- Investment appraisal techniques
• Payback period
• Average rate of return
• Net Present Value (Present Value And Discounted Cash Flow)
• Internal Rate of Return
- Other factors affecting investment decisions
- Sources of financing
• Internal vs external
• Short, medium, and long-term sources
• Factors affecting the choice
• Borrowing vs issuing shares
