Course Code: 019
The course is designed for professionals who need a better understanding of financial techniques to help them become more effective financial managers. The emphasis is on the application and interpretation of information for decision-making rather than the preparation of statements and reports. The course covers a broad range of financial concepts and looks at both general purpose financial accounting as well as the more detailed financial information used on a day to day basis by financial managers.
Attendance on this course will improve your analytical and business planning skills and enable you to communicate more confidently with financial experts and senior management
There are no prerequisites for attendance
Who Should Attend
The course is designed for managers, professionals and administrators in companies, consultancies, financial institutions and governmental organizations who do not hold a degree in finance. It will benefit non-financial specialists in sales, marketing, human resources, operations, IT, engineering as well as general management roles
By the end of the course, you will be able to:
- explain the purpose and the content of financial statements
- understand the shortcomings of financial statements
- use ratios to assess the performance of a business
- explain why cash flow is a key measure of performance
- explain how cost information can improve decision making
- plan and budget your financial requirements effectively
- understand how accounting can enhance control within a firm
- identify the advantages and disadvantages of various investment appraisal methods
- explain why it is important to “look beyond the numbers”
Part 1 (45 hrs)
- Principals of Financial Statements: overview of financial statements, content of profit and loss and balance sheet, key measurement issues and principles, accounting in a changing business environment.
- Shortcomings of Financial Information: the role of subjective judgment, recent accounting scandals, international differences.
- Evaluation of Financial Statements: Framework of analysis, interpretation techniques, uses and limitations of ratios, business risk and financial risk
- Cash Flow: differences between cash and profit, working capital management, the growing importance of cash in company analysis
- Understanding Costs for Decision Making: types of cost, how to use cost information for decisions, cost-volume relationship and contribution, breakeven analysis.
- Budgetary Control: the need for effective internal control, variance analysis, flexible budgets and controllable costs, monitoring.
- How to Budget Effectively: budget organization and preparation, the budget cycle and administration budgeting pitfalls and tips, new developments in budgeting
- Investment Appraisal: introduction to capital budgeting, methods of appraising projects, internal rates of return, net present value, cost of capital
Part 2 [15 hrs]
Software: Excel with financial applications