Finance for Non-Financial Managers Part 1
This is a 2-day course packaged for operational and functional managers who have only some knowledge of accounting and finance, but who need to understand finance to be able to perform their jobs better and/or to interface with Finance department staff. It is designed for professionals who need a good working knowledge of Finance to apply in their job.
This course introduces the scope of finance and the areas that one will need to know to understand financial statements and their usefulness in decision-making. The fundamental areas covered are:
- The framework of accounting (assumptions, principles and concepts)
- The interrelationships among key components of the financial statements ie the Statement of Financial Position (Balance Sheet), the Profit & Loss Statement, and the Statement of Cashflows.
- Financial Statement analysis and interpretation.
- Financial and operational leverage and its implications to capital structure
- Investment appraisal concepts
As cashflow is the centre-piece of finance, you will learn how to read cashflow statements in detail and learn cashflow management techniques.
The course also cover the Financial reporting regime, Budgeting using Linear regression method to project sales, and Investment appraisal concepts.
At the end of the course, you will be able to:
- Articulate the scope of finance
- Read finance statements and understand the component interrelationships
- Understand the critical difference between ROA (Return on assets) and ROE (return on equity)
- Apply financial ratios to analyse financial statements
- Analyse cashflow statement in detail and its implications to the business
- Understand operating and financial leverages, business and financial risks and their linkages to capital structure.
- Learn the importance of “financial limits to growth” model and its significance in assessing the going-concern assumption of the firm.
- Understand the financial reporting regime, budgeting & forecasting process and the linear regression method of budgeting sales.
- Articulate investment appraisal concepts and their applications
WHO SHOULD ATTEND
This course is designed for senior executives (MDs, Directors, CEOs, GMs), senior managers, managers, senior executives, newly-promoted managers, operations managers and functional managers, and relationship managers who need to understand finance and/or analyse financial statements in the course of their work and in interfacing with finance staff. It is also for non-finance professionals who need a clear understanding of this subject.
||Scope of finance and what a non-finance manager needs to know about finance
||Framework of Accounting (assumptions, principles and conventions)
||Debits and Credits Re-visited
||Objectives of Financial Accounting (Maximization of profit, Maximisation of wealth)
||Goals of Financial Management (Profit-risk approach, Liquidity-profitability approach)
||Financial Statements – Statement of Financial Position (Balance Sheet), Profit & Loss Statement, and Cashflow Statement
||Integrated diagram showing the concepts, interrelationships, flows and analyses.
||Cashflow statement analysis and cashflow management techniques
||Capital structure and its implications to leverage and risks.
||Cashflow Statement Analysis and Cashflow Management Techniques
||Financial Statement Analysis – ratio analysis and interpretation
||ROA (Dupont Method) vs ROE Method
||“Financial limits to growth” Model
||An integrated and systematic approach to financial statement analysis
||Budgetting and Forecasting (introducing the Linear regression model in budgeting sales)
||Cashflow and working capital management
||Investment appraisal – risk/reward, time value of money. Net Present Value (NPV), Discounted Cashflow (DCF), Internal Rate of Return (IRR)