Finance for Non Financial Professionals

Overview:

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.

• Supervisors.

• Financial analysts.

• Business owners.

• Department heads.

• 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.