This finance course is designed for managers and other professionals who need an understanding of the financial drivers of business. This short course is for participants who require financial management skills and knowledge as part of their role (non-financial managers).
This course provides an introduction to the concepts underlying external financial accounting and internal management accounting. You will be introduced to the skills necessary to prepare, interpret and analyse financial statements, including balance sheet, profit and loss statements. You will gain an insight into how your business decisions impact the financial reports of your company.
In this finance short course, we will also cover budgeting, costing and key performance indicators, and clarify the often-misunderstood area of accrual accounting.
This course will enable you to:
- Utilize key financial terms and concepts.
- Analyze the 3 key financial statements – Profit & Loss, Balance Sheet and Cash Flow Statement.
- Forecast and prepare budgets.
- Calculate financial ratios for evaluating the health of the organization.
- Calculate variances and recommend corrective action for achieving a budget.
Upon successful completion of this finance course, participants should be able to:
- Recognize why accrual accounting is commonly used in business.
- Appreciate the rationale for depreciation and amortization of assets.
- Interpret a Profit and Loss Statement, Balance Sheet and Cash Flow Statement.
- Assess the financial health of a business using financial ratios.
- Prepare forecasts and set budgets for sales, costs and expenses using a range of methods.
- Calculate variances and recommend corrective action for achieving a budget.
Financial terminology and concepts
- Income and expenses
- Assets, liabilities and equity
The Basis for Accrual Accounting
- Accrual accounting versus cash accounting
- End of period recording of accruals and prepayments
Financial management of assets
- Use of depreciation
- Difference between depreciation and amortization
Financial statements
- Interpretation of P&L, Balance Sheet and Cash Flow Statement
- Calculation of key financial ratios
- Interpretation of the health of a business using financial ratios
Financial forecasting
- Use of history, market conditions and the Delphi method
- Forecasting for sales, costs and expenses
Budgeting
- Budgeting for an organization
- Defining and budgeting or profit center, cost centers and for projects
Calculating and acting on variances
- How to calculate a variance
- Correcting for unfavorable variances
- Generating an estimate of likely performance compared to the budget
This finance course is suitable for managers, team leaders, board members or individuals from a non-financial background who wish to develop their competencies for understanding their organisation’s financial statements and structures.
Course examples will be provided to cater for attendees from all sectors – Commercial, Not-for-Profit and Government – indeed the course is designed to meet the needs of anyone who needs to interpret financial data in a work or board setting to assist with their decision-making.
