Course Objectives
Finance for Non-Finance Professionals - Virtual Learning
Course Methodology
The course uses a mix of interactive techniques, such as brief presentations by the consultant, case studies and group exercises to apply knowledge acquired throughout the course
Course Objectives
By the end of the course, participants will be able to:
Define the four key financial statements: balance sheet, income statement, cash flow and changes in owner equity as well as key financial terms such as profit, margins and leverage used in organizations
Interpret the financial health and condition of a company, division or responsibility center and use financial information for management and evaluation
Prepare a company's operating budget and relate it to the organization's strategic objectives
Target Audience
Managers, supervisors and staff from any function including finance who need to improve their understanding and usage of financial information
Target Competencies
Accounting
Understanding financial statements
Financial analysis
Budgeting
Course Outline
The key financial statements
Understanding the accounting cycle
The five main accounts in financial statements
Income statement: tool for performance measurement
Accrual basis versus cash basis
Balance sheet: tool for financial position
Statement of owners’ equity
Statement of cash flows: cash is king
Wrapping-up: the cycle of financial statements
External and internal auditors’ responsibilities
The building blocks of financial statements analysis
Horizontal and trend analysis
Vertical analysis and common size financial statements
Liquidity analysis
Current ratio
Quick ratio
Cash ratio
Solvency analysis
Debt to assets
Equity ratio
Interest coverage
Activity and investment analysis
Receivables turnover
Inventory turnover
Payables turnover
Cash conversion cycle
Total assets turnover
Profitability analysis: margins and returns
Gross profit margin
Operating profit margin
Net profit margin
Return on equity
Return on assets
Operating budget process and techniques
What is an operating budget
Steps to budget development
Master budget components
Sales forecasting
Approaches to budgeting
Incremental budgeting
Zero-based budgeting
Budgetary control and correction
The key financial statements
Understanding the accounting cycle
The five main accounts in financial statements
Income statement: tool for performance measurement
Accrual basis versus cash basis
Balance sheet: tool for financial position
Statement of owners’ equity
Statement of cash flows: cash is king
Wrapping-up: the cycle of financial statements
External and internal auditors’ responsibilities
The building blocks of financial statements analysis
Horizontal and trend analysis
Vertical analysis and common size financial statements
Liquidity analysis
Current ratio
Quick ratio
Cash ratio
Solvency analysis
Debt to assets
Equity ratio
Interest coverage
Activity and investment analysis
Receivables turnover
Inventory turnover
Payables turnover
Cash conversion cycle
Total assets turnover
Profitability analysis: margins and returns
Gross profit margin
Operating profit margin
Net profit margin
Return on equity
Return on assets
Operating budget process and techniques
What is an operating budget
Steps to budget development
Master budget components
Sales forecasting
Approaches to budgeting
Incremental budgeting
Zero-based budgeting
Budgetary control and correction