Who should attend
Managers, supervisors and staff from any function including finance who need to improve understanding and use of financial information.
About the course
During this greatly successful program, 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.
## Course Objectives
By the end of the program, participants will be able to:
- Explain the functions of financial management and its role in running businesses.
- Communicate effectively with finance professionals by using common financial language.
- Define the four key financial statements: balance sheet, income, cash flow and changes in owners’ equity as well as key financial terms used in organizations (e.g. profit, margins, leverage, etc.)
- Interpret the financial health and condition of a company, division or responsibility center.
- Apply capital budgeting techniques and cost- volume-profit analysis to enhance decision making.
- Use financial information to manage and evaluate their company or department operations.
## Course Outline
Introduction to Finance, Accounting & Auditing
What is accounting? What is finance?
What is financial accounting?
Accounting Concept and Principles
Relevance, Reliability, Matching Concept, Timeliness, Neutrality, Faithful Representation, Prudence, Completeness, Single Economic Entity Concept, Money Measurement Concept, Comparability/Consistency, Understandability, Materiality, Going Concern, Accruals, Business Entity, Substance over Form, Realization Concept, Duality Concept
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
Published Annual Reports for stockholders
The role of external Auditor in Holding/Subsidiaries establishments
Distinguish between the different types of opinions given in audit reports
Why the company needs Internal Auditor although it has external auditor
The Financial Statements
The key elements of financial statements defined and explained
Assets – current and non-current
What is depreciation? – explanation of their impact on profit
Liabilities – current and non-current
Company net worth
How is profit calculated?
The difference between revenue and capital expenditure
Profit or cash – what is the difference?
Basic Evaluation of Financial Statements
Why do we need to evaluate financial statements?
Who are the stakeholders and what are their information needs?
Financial analysis tools:
How to calculate accounting ratios
How to use ratio analysis to assess performance
Related KPI for finance; profit margins, ROI, asset turnover, average number of days inventory held, etc.
The meaning of working capital
Operating efficiency ratio
The Cash Flow Cycle and Working Capital
Valuing a company – Book Value versus Market Value
Introduction to Costing Systems
What is management accounting?
Collecting and analyzing costs
Types of cost analysis: by type, by location, by behavior, by purpose
What are overheads, and how should we analyze them?
What is the Cost of Production - Marginal and Total Costing explained
What is inventory, and how does it affect the cost of production?
Methods of valuing inventory – FIFO, LIFO, and AVCO explained
How to measure the break-even point and the margin of safety
Why do we need budgets? – the link between corporate strategy and operations at all levels of the organization
The benefits & limitations of budgets
The key features of budgets
Basic budget forecasting techniques
How to prepare a departmental budget
Comparing actual performance with the budget – Variance Analysis
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.