Management Accounting and Finance for Non-Finance Professionals

• Basic familiarity with business operations

Audience

• Non-finance professionals

Management accounting, also known as managerial accounting, involves preparing and analyzing financial information to help managers make informed business decisions.

This instructor-led, live training (online or onsite) is aimed at beginner-level non-finance professionals who wish to have a foundational understanding of financial and accounting principles that are essential for effective decision-making in business.

By the end of this training, participants will be able to:

• Understand basic financial and accounting concepts that are essential for business decision-making.
• Interpret and analyze financial statements such as income statements, balance sheets, and cash flow statements.
• Apply key financial ratios to assess the financial health of a business.
• Develop and manage budgets and perform variance analysis to monitor business performance.
• Use break-even analysis to support operational and strategic decisions.

Format of the Course

• Interactive lecture and discussion.
• Lots of exercises and practice.
• Hands-on implementation in a live-lab environment.

Course Customization Options

• To request a customized training for this course, please contact us to arrange.

Introduction to Finance and Accounting

• Overview of finance and accounting functions
  • Difference between finance and accounting
  • The role of financial management in business
• Understanding the language of finance
  • Key financial terms and definitions
• Importance of financial literacy for non-finance managers

Financial Statements Overview

• The income statement (profit & loss statement)
  • Understanding revenue, expenses, and profit
  • Key metrics: gross profit, operating profit, net profit
• The balance sheet
  • Assets, liabilities, and equity
  • Financial health of a business
• The cash flow statement
  • Cash flow vs. profit
  • The importance of cash flow management

Key Financial Ratios and Analysis

• Profitability ratios
  • Gross profit margin, operating margin, and net profit margin
• Liquidity ratios
  • Current ratio, quick ratio
• Solvency ratios
  • Debt to equity ratio
  • Interest coverage ratio
• Efficiency ratios
  • Return on assets (ROA), return on equity (ROE)

Budgeting and Forecasting

• Introduction to budgeting
  • The purpose of budgeting in business
  • Types of budgets: operational vs. capital budgets
• Variance analysis
  • Analyzing differences between budget and actuals
  • Identifying key drivers of variance
• Forecasting techniques
  • Short-term vs. long-term forecasting

Cost Accounting and Break-even Analysis

• Understanding cost concepts
  • Fixed, variable, and semi-variable costs
• Cost allocation methods
  • Direct and indirect costs
• Break-even analysis
  • Calculating break-even point
  • Application of break-even analysis in decision-making

Capital Investment Decisions

• Introduction to capital budgeting
  • What is capital investment?
  • Importance of capital budgeting in business strategy
• Common capital budgeting techniques
  • Payback period, net present value (NPV), and internal rate of return (IRR)
• Evaluating investment opportunities
  • Risk vs. return

Financial Decision-Making for Managers

• Making financially sound decisions
  • Cost-benefit analysis
  • Evaluating the financial impact of managerial decisions
• Using financial information to influence strategy
  • Connecting financial analysis to business strategy
• Practical applications in real-world scenarios

Performance Measurement and Reporting

• Key performance indicators (KPIs)
  • Financial KPIs and their importance
  • How to interpret KPIs in financial reports
• Financial reporting for non-finance managers
  • Understanding the audience for financial reports
  • How to present financial information effectively

Summary and Next Steps