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Business Finance for Non-Finance Managers
INTRODUCTION
In this fast challenging business world, where the emphasis is on corporate governance and profitability, financial awareness for managers is not an option. It has become a necessity.
The course is specially designed for managers who do not have a full financial training or strong finance background and having some basic accounting knowledge will be an advantage, and whose managerial responsibilities include the following:
* Managing their contribution and performance towards the company business goals, plans and profitability.
* Managing and/or running more effectively the business and/or department operations.
* Planning and decisions making with financial tools.
* Accountability for the profitability of the business, sales plan and growth, market share, department expenditure and goals.
* Managing and/or understanding how credit limit and credit control affect the “working capital” of the company
* Using finance tool for Project planning
* Controlling Budgeting and forecasting
* Negotiating with Suppliers, Banks and Customers
OBJECTIVES
1 .Understanding the language and “jargon” of finance and to work effectively with the Chief Financial Officer/Financial Controller and their finance team
2. Able to accomplish the important business tasks as follows:
* Read Annual Reports
* Understand Financial Statements- Balance Sheets, Profit and Loss, and Cash Flow
* Measure the liquidity of a business
* Differentiate between regular income and extraordinary items
* Why companies goes bankrupt
* Do a break-even analysis
* Figure out return on investment
* Compute the cost of capital
* Put together a Business Plan
* Decide whether your business should be a sole proprietorship, partnership or a private limited company
* Manage Foreign currency exposure
* Value a business
* Understand Financial Reports versus Management Reports
* Understand Exception Reports
* Prepare a budget
* Understand Budget and Forecasts
* Managing Internal Controls
3.Understand the types of costing manufacturing costing,
* process costing
* direct and indirect costing
* activity costing
* cost allocation
4. Understand the financial side of investment appraisal, return on investment, requirements of a profit center and/or a cost center
5. Understand how financing both internal and external
6. Understand capital expenditure, capex planning and capex management
7. Understand financial implications of the
* Business transactions
* Orders and Sales
* Transfer of Titles
* INCOTERMS
COURSE OUTLINE
Part A - FINANCE SKILLS FOR NON-FINANCIAL MANAGERS
a. What is Practical Business Finance Skills all about?
b. The Manager’s role in regards to Finance-
- Decision Making
- Operational profits and costs management
- Meeting the Budgets
- Operating expense budgets
- Cost control
c. How to measure department performance with the company goals and performance.
Part B - BUSINESS FINANCE SKILL DEVELOPMENT PROCESS
1. BUSINESS PLANNING and RESOURCE UTILISATION
a. Departmental Planning Model
- Objectives, Strategies and Action Plan and Budgeting.
b. Business Planning and Budgeting process.
c. How to calculate the Financial Ratios and how to interprete it.
2. BUSINESS FINANCIAL STATEMENT APPLICATIONS
a. How to analyze the Balance Sheet, Profit and Loss, Cash Flow and Actual versus budget variances.
b. How ratios and percentage interpretation varies.
c. Business Profitability and Business Valuation.
3. BUSINESS FINANCIAL PERFORMANCE ANALYSIS
a. Practical exercises on the business ratios.
b. What is over-trading?
c. Trend Analysis and Performance Review.
4. BUSINESS CASH FLOW MANAGEMENT
a. What are Cash Flow, Source and Applications?
b. How to prepare monthly operational cash flow.
c. Type of sources of capital.
5. CASE STUDIES FROM PARTICIPANTS
a. How to analyze the case studies and develop problem solving techniques.
6. BUSINESS FINANCE AND CREDIT CONTROL
a. Financing and working capital.
b. Effective Debt Collection methods.
c. Importance of working capital.
7. BUSINESS BREAK-EVEN ANALYSIS
a. Managing profitability with break-even analysis.
b. Cost Volume for decision making.
8. BUSINESS INVESTMENT APPRAISAL
a. Returns on Capital Investments.
b. Investment Appraisal methods:-
i) IRR
ii) Payback Period
iii) NPV
9. BUSINESS BUDGETARY PLANNING AND CONTROL
a. Budget Preparation.
b. What are non-recurring and extraordinary expenses?
c. Budget, Flexi budget or Forecast, Variances analysis.
10. DUE DILIGENCE AND GOOD INTERNAL CONTROLS, AND SARBANES OXLEY ACT
a. What is due diligence and the compliance?
b. What are Internal Controls and how to have a good internal control policy?
c. What is Sarbanes Oxley Act and how it can contribute to your business?
WHO SHOULD ATTEND
Entrepreneurs, Directors, CEOs, General Managers, CIOs, CTOs, Business Professionals, Non-Financial Professionals, Heads of Department, Managers, Sales and Marketing personnel, Executives, Consultants and those who are interested in developing practical business financial management skills.
This course is meant for those who have some basic level of accounting knowledge.
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