Finance for Non Finance Managers: Middle Managers & Executives
DESCRIPTION
This program is designed specifically as to ensure managers can develop the capacity to make informed financial decisions. Participants expand their awareness and understanding of the way finance affects their business objectives. Initially, participant are shown how financial data is generated and reported, and how this is then used for decision making, business analysis, and valuation of projects and businesses. Outlining the accounting process is at the very beginning of the program, followed by the role and importance of financial statements, budgeting, performance ratios and project analysis. Participants learn to differentiate accounting and economic profits, and to review the key financial statements with an eye toward discerning between the two methods. Sensitivity and risk analysis is covered, as is analysis of how to manage working capital and weigh between alternative projects. The orientation of this program is developing hands-on and practical skills, and hence Excel is used throughout the program.
TARGET AUDIENCE
- This program is suited particularly to professionals in the engineering, scientific and technical fields, across a wide range of industries. Individuals and cross-functional teams who are new to financial concepts, techniques and daily application benefit most from this program.
OBJECTIVES
- Understand how financial information I created and manipulated
- Identify and evaluate all major financial statements
- Knowledge of profit/loss, balance sheets and cash flow
- Competence in planning, monitoring and controlling a budget
- Understand budgeting, forecasting and valuation
- Weigh competing projects based on financial information
- Compare and contrast alternative projects and evaluate the performance of each
- Conduct alternative methods of valuation
- Explain how hedging and derivatives are used to reduce risk exposure
PREREQUISITES REQUIRED
No prior financial experience or knowledge is required. This program is designed for participants who are numerate, and now exposed to financial decision-making.
- Workshop introduction
- Instructors’ experience
- Curriculum outline, background and purpose
- Review of mutual objectives
- Primary activities and support activities
- Finance department responsibilities
- Double entry accounting
- Capital costs and operating expenses
- Depreciation
- Provisions and accruals
- The Balance Sheet
- The Profit & Loss Statement
- The Cash Flow Statement
- What are the key financial ratios?
- How to use KPIs to manage the business
- Trend analysis and comparative analysis
- Credit versus Investment analysis
- The master budget
- Top down and bottom up budgeting
- Budgeting to constraints and uncertainty
- The difference between cash flow and profit
- The concept & implications of accrual accounting
- The importance of cash flow to shareholders
- The time value of money
- The cost of capital
- Discounted cash flow analysis
- Preparing a discounted cash flow statement
- Net Present Value, Internal Rate of Return, Payback, Profit to Investment ratio
- What ranking criteria do I use and when?
- The valuation of equity
- Sources of value
- Understanding uncertainty & risk
- Sensitivity analysis
- Monte Carlo analysis
- Inflation: What are real and nominal cash flows?
- Equivalent annual values.
- Make or buy decisions.
- Lease or buy decisions
- What is the cost of production?
- Cash costing and full costing
- When do we shut down a product line/plant?
- Allocating overheads to products
- Activity Based Costing
- Transfer pricing
- Cash planning and control
- The cost of excess cash in the business
- Managing payables & receivables
- Managing inventory levels and costs
- Budgeting & planning for shareholder value
- Economic Value Added
- Results and awarding of prizes
- Review of subjects and themes discussed
- Review of objectives
- Final questions and answers
- Compete feedback forms
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