Financial Awareness for the Non-Financial Person

All employees can be even more productive if they have a clear understanding of the financial and commercial considerations that impact their business. This course is designed to fill this particular knowledge gap in a fast-moving, interactive format that focuses on practical knowledge.

The course trainer translates the jargon, conventions, and formats of accounting into simple, easy to understand language. Upon completion of the course, delegates will feel comfortable using financial terms, have a clear understanding of what they mean, and how they impact on the bottom-line of the individual delegate's business.

Case study work, and practical exercises, form an important part of this programme. These are reinforced by trainer-led discussions.

## Course Objectives

• To understand the concept of Accrual Accounting and how it differs from Cash Accounting
• To understand and interpret a basic Profit & Loss Statement (Income Statement)
• To understand and interpret a basic Balance Sheet
• To assess ways of improving working capital
• To understand depreciation & amortisation
• To understand a simple Cash Flow statement
• To understand how to use ratios to analyse a business
• To understand the different types of costs (fixed / variable / semi-variable and direct / indirect)
• To use breakeven analysis
• To understand different sources of business financing
• To understand different budgeting techniques
• To use variance analysis to assess budget performance
• To apply and assess the merits of key investment appraisal techniques (ROI)

## Course Outline

• Understanding Key Financial Statements
  • The Profit & Loss Statement
  • The Balance Sheet
  • Cash Flow Statement & Forecast
• Understanding Income And Expenses
• Gross Profit, Cost Of Goods Sold, And Net Profit
• Accrual-Based Accounting
• Distinguishing Between Fixed And Current Assets, Current And Long-Term Liabilities, And Equity
• Depreciation And Amortisation
• Causes Of Insolvency
• Ways To Improve Working Capital And Cash Flow
• Ratio Analysis
  • Profitability Ratios
  • Liquidity Ratios
  • Efficiency Ratios
  • Financial Risk Ratios
• Horizontal & Vertical (Sizing) Analysis
• Cost Types
  • Fixed And Variable Expenses
  • Direct And Indirect Expenses
• Break-Even Analysis
• Basic Pricing Strategies
• Mark-Up Vs Gross Margin
• Up-Selling And Cross-Selling
• Sources Of Financing
• Internal Vs External
• Short, Medium, And Long-Term Sources
• Factors Affecting The Choice
• Borrowing Vs Issuing Shares
• Investment Appraisal Techniques
  • Payback Period
  • Average Rate Of Return
  • Present Value And Discounted Cash Flow
  • Internal Rate Of Return
• Other Factors Affecting Investment Decisions