Finance for Non-Financial Managers

There is a great need for better communication between Financial and non-Financial professionals, for a better tool to help the Non-Financial Manager understand the language of Finance, and for the Financial professional to learn the terminology that has meaning for the Non-Financial Manager

Course Outline:

Module 1: How Critical is Good Financial Information, Anyway?

• Managing a Company in Today’s Business Environment
• The Role of the Finance Department
• IFRS: The “Rules” of Financial Reporting
• The Relationship of Finance and Accounting to their Departments

Module 2: The Structure and Interrelationship of Financial Statements

• Tracking the Life Cycle of a Company
• Accounting Is Like a Football Game on Videotape
• The Chart of Accounts—A Collection of Buckets
• The General Ledger—Balancing the Buckets
• Accrual Accounting
• The Principal Financial Statements Defined

Module 3: The Balance Sheet: Basic Summary of Value and Ownership

• Assets and Ownership
• Current Assets—Liquidity Makes Things Flow
• Fixed Assets—Property and Possessions
• Other Assets
• Current Liabilities
• Long-Term Liabilities—Borrowed Capital
• Ownership Comes in Various Forms
• Using This Report Effectively

Module 4: The Income Statement: The Flow of Progress

• They Say Timing Is Everything
• Sales:
• Cost of Sales:
• Gross Profit: The First Measure of Profitability
• Operating Expenses: Running the Business
• Operating Income: The Basic Business Bottom Line
• EBITDA
• Other Income and Expenses
• Income Before Taxes, Income Taxes, and Net Income
• Earnings per Share,
• Using This Report Effectively

Module 5: A Profit vs. Cash Flow: What’s the Difference?

• The Cash Flow Cycle
• Cash Basis vs. Accrual Basis
• Net Profit vs. Net Cash Flow in Your Financial Reports

Module 6: The Cash Flow Statement: Tracking the King

• Beginning Where the Income Statement Ends
• Cash from Operations
• Cash for Investing
• Cash from Financing
• Using This Report Effectively

Module 7: Critical Performance Factors: Finding the “Hidden” Information

• What Are CPFs
• Measures of Financial Condition and Net Worth
• Measures of Profitability
• Measures of Financial Leverage
• Measures of Productivity
• Trend Reporting: Using History to Predict the Future
• Cost Accounting:
• The Purpose of Cost Accounting
• Fixed and Variable Expenses in the Factory
• Controllable and Uncontrollable Expenses
• Standard Costs—Little Things Mean a Lot
• Manufacturing Cost Variances

Module 8: Business Planning: Creating the Future You Want

• Why Take Time to Plan?
• Strategic Planning vs. Operational Planning
• Vision and Mission—The Starting Point
• Strategy—Setting Direction
• Long-Term Goals—The Path to the Mission
• Short-Term Goals and Milestones—The Operating Plan

Module 9: The Annual Budget: Financing Your Plans

• Tools for Telling the Future: Budgets, Forecasts, Projections
• How to Budget for Revenues
• Budgeting Costs
• The Budgeting Process
• Flexible Budgets
• Variance Reporting and Taking Action

Module 10: Financing the Business: Understand the Debt vs. Equity Options

• How a Business Gets Financed
• Short-Term Debt
• Long-Term Debt
• Convertible Debt
• Capital Stock
• Attracting Outside Investors
• The Entrepreneur’s Path
• The Start-up Company
• Professional Investors
• Venture Capitalists
• The Initial Public Offering
• Strategic Investors:
• Acquisition

Course Duration:

2 days

• The course is offered in-house and can be custom made to include specific examples and exercises based on the organisation’s activities.
• The course is wholly interactive combining theory with role play, team exercises and group interaction.
• Evaluation happens through participation and group discussion

Who should attend:

• Managers
• Project managers
• Sales people