Introduction:

This training program equips participants with a comprehensive understanding of key financial statements and essential financial concepts. By integrating financial management principles with strategic decision-making, it empowers them to drive organizational success.

Program Objectives:

At the end of this program, participants will be able to:

Define the four key financial statements: balance sheet, income statement, cash flow, and changes in owner equity as well as key financial terms.
Interpret the financial health and condition of a company, division, or responsibility center and use financial information for management and evaluation.
Define between accounting and finance and explain the finance role in running businesses.
Prepare a company's operating budget and relate it to the organization's strategic objectives.
Apply capital budgeting techniques and cost-volume-profit analysis to enhance decision making.

Targeted Audience:

Managers and Supervisors.
Financial analysts.
Business owners.
Department heads and Team leaders.
Professionals involved in budgeting and financial planning.
Employees seeking to enhance their financial understanding.

Program Outlines:

Unit 1:

The Key Financial Statements:

Understanding the accounting cycle.
The five main accounts in financial statements.
Income statement: a tool for performance measurement.
Accrual basis versus cash basis.
Balance sheet and The balanced status.
Statement of owners’ equity, Statement of cash flows.
External and internal auditors’ responsibilities.

Unit 2:

Analysis of Financial Statements:

Why are ratios useful.
Horizontal and trend analysis.
Vertical analysis: common size statements .
Building blocks analysis and reading through the numbers.
Liquidity ratios, Solvency ratios, Activity ratios, and Profitability ratios.
Limitations of financial ratio analysis.

Unit 3:

Working Capital Management:

Definition of working capital and working capital management.
Working capital management strategies for current assets.
Balancing profitability and liquidity.
Working capital management strategies for current liabilities.
The trade-off between profitability and certainty.

Unit 4:

The Concept of Financial Management:

Accounting versus finance: rules and responsibilities.
Three pillars of finance: Financing decisions, Investing decisions, Operating decisions.
Understanding the role of financial management in business strategy.
Integrating financial goals with overall organizational objectives.

Unit 5:

Breakeven Analysis and Decision Making:

Defining fixed costs.
Defining variable costs.
Contribution margin formula.
Computing breakeven point.
Sensitivity analysis: changing assumptions.

Finance for Non Financial Professionals