Course Description

INTRODUCTION

Executives and business professionals need to understand the financial factors critical to business success. This interactive Finance for Non-Finance Professionals training course will show how finance works in today’s fast-moving business environment. For any business the key elements of profitability, liquidity and financial structure are critical for continuing success and competitiveness. So, these three elements are comprehensively explored and developed at all levels of business activity.

You will learn about the accounting processes of recording and reporting business transactions, and how these are summarized as periodic financial reports in accordance with statutory requirements. You will also learn how these financial reports are analyzed by a variety of user groups.

This Finance for Non-Finance managers training course also has an inward focus and will explain why management accounting is essential to business survival, and success. It will show how budgeting can control costs and improve profitability. It will explain and develop tools and techniques for evaluating proposed new investment projects. This training course will enable you to understand the business from both a financial and strategic perspective, and how business decisions will impact on corporate profitability.

Objectives

Having completed this Finance for Non-Finance Professionals training course, you should be able to:

Explain the nature and role of financial statements and their interpretation

Use the language of accounting and finance to communicate effectively with financial professionals

Review the financial performance and financial position of an organization using the appropriate financial ratios and break-even analysis techniques

Use budgetary control to compare actual against planned performance and to identify corrective actions

Evaluate investment projects using DCF and other appraisal methods.

Course Outline

Day 1

The Business & Financial Environment

The business environment                 

The role of financial management

Developing a strategic financial plan

The role & purpose of financial & management accounting

Accounting conventions, policies & International Financial Reporting Standards (IFRS)

The executive’s role in corporate governance

Day 2

Financial Statements & Financial Analysis for Executive Decision Making

Corporate financial information: - Internal & external

The key elements of published annual financial reports            

Financial statements analysis to evaluate financial performance to improve liquidity, profitability, & efficiency

Working capital management

Cash flow statements and calculating free cash flow

Predicting business failure with ratios and other key indicators

Day 3

Strategic Financial Decision Making

Financing the business – Why and when?

Financing principles, short-term vs. long-term, debt vs. Equity

Sources and types of finance

Determining the cost of long-term finance - The cost of capital models:

Cost of Equity (Ke) – Dividend Valuation Model

Cost of Equity (Ke) - Capital Asset Pricing Model

Cost of Debt (Kd)

Weighted Average Cost of Capital (WACC)

Review of external growth strategies:

Mergers, acquisitions and joint ventures

Review of restructuring strategies: Demergers, spin-offs, unbundling, MBO, MBI, BIMBO

Day 4

The Executives Role in Capital Investment

The capital investment process

Basic appraisal techniques – ARR and Payback

Why you should consider the time value of money?

Discounted cash flow appraisal techniques – NPV and IRR

Practical issues to consider in NPV appraisal - Inflation, Capital Rationing, Risk and Uncertainty

Managing risk & uncertainty

Day 5

Executive Management & Control of Budgets

The purpose and importance of budgeting

Different budgeting models – Are They Relevant for Your Business?

Preparing, negotiating & implementing the budget

Controlling the budget

Variance analysis

Using budgets to aid decision making: Cost / Volume / Profit (CVP) analysis & break-even analysis