Finance for Non-Finance Managers

The Finance for Non-Finance Managers training is a highly sought-after program designed for professionals seeking a practical understanding of finance. This interactive 1-day training provides a comprehensive overview of key finance areas, supplemented by a course guide-book and numerous worked examples to facilitate learning. Upon completion, participants will receive a course completion certificate.

During this greatly successful program on ‘Finance for Non-Finance Managers’, managers with small or no financial training or experience can learn to use the language, tools, and techniques of finance. You will be able to return to your organization with the confidence to analyze financial information and participate fully in making business decisions.

Objectives

1. Fixed versus variable costs
2. The impact of inventory build-up
3. The need to control working capital
4. Standard measures (operating income, net income, ROA)
5. Your company’s specific financial measures

What you will learn

1. The differences between cash flow and profit
2. Cost structure, and its importance for pricing and planning
3. The differences between cash flow and profit
4. Cost structure, and its importance for pricing and planning
5. Key ratios like leverage and profitability and ROA
6. Where information comes from for good decisions

The Why & How of Numbers

• Demystifying the most commonly used finance/accounting terms including
• Are there any financial regulations that govern the world of accounting & finance?
• Different methods of accounting i.e. Cash vs Accrual basis
• Introduction to the Financial Statements containing
• Income Statement
• Balance Sheet 
• Cashflow Statement
• Statement of Changes in Equity
• The relationship and flow of data among all Financial Statements

Revenue & Expenditure

• What is included in Revenue and what is excluded from it
• Cash vs Revenue; why these are not the same
• Different types of expenditure used in recording financial transactions
• What is Cost of Goods Sold – Why this is important and how it affects the profitability

Income Statement

• A detailed review of Income Statement and its line items
• Understanding the key terminology used in the Income Statement
• What are different types of profits i.e. Gross Profit, Operating Profit, Net Profit
• What are EBIT and EBITDA and its significance
• What are the extraordinary items and how they are viewed while analyzing the Income Statement

Balance Sheet

• Key terms used in Balance Sheet i.e. Assets, Liabilities and Equity
• Understanding the nature of Assets and their classification in Current and Non-Current assets
• What are intangible assets and how we record them in the balance sheet
• Understanding Depreciation & Amortization
• How to classify the Current & Non-current liabilities
• What is included in Equity, Retained Earnings, and Reserves?

Cashflow Statement

• Understanding the structure of Cashflow Statement
• What are the different classification of Cashflows according to the activities
• Cashflow from Operating Activities
• Cashflow from Investing Activities
• Cashflow from Financing Activities
• Establishing the link between cash flow from the above 3 activities and how the business can relate
  to the financing sources with the help of cash flows from different activities

Finance Statement Analysis – Ratio Analysis

• What is the objective of Financial Analysis
• What are different types of financial ratios?
• How to calculate and interpret different types of financial ratios including 
• Profitability ratios
• Liquidity Ratios
• Solvency Ratios
• Investor Ratios 
• Are ratios half the picture?
• How to use ratios to analyze a company’s financial health

Introduction to Budgeting

• How can financial budgets play a vital role in managing the business?
• What is the budget cycle?
• Long run budget vs short run budgets
• Different budgeting methodologies including static budget, flexible budget, zero-based budgets etc.

Investment Appraisal & Project Evaluation Techniques

• Demystifying the Time Value of Money Concept
• Using time value of money concept calculate the discounted cash flows
• How to segregate between relevant and irrelevant cashflows when analyzing the new project
• Introduction to various investment appraisal techniques including 
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Payback Method 
• How to make project decision regarding accepting or rejecting a new project