Finance For Non Finance Professionals | Simfotix
 

Finance For Non-Finance Professionals

Overview
If you are not confident working with financial concepts and language, you are not alone! More and more, managers are expected to make financially based decisions without the assurance of a formal financial background. Finance for the Non Finance Professional is an in-depth and practical two-day course that demystifies financial concepts and provides tools for enhancing your effectiveness as a manager. By the conclusion of the course you will have more clarity, be able to connect the facts with figures and communicate easily in financial terms. You will be able to comprehend the content of financial statements, analyse and interpret financial information, understand the importance of cash flow and match your budgets to realistic targets.
Course Outline
The Accounting Process – from Transactions to Financial Information
  • Develop an understanding of the sources of financial information
  • Gain an insight into accounting systems, terminology and concepts
  • Examine why the timing of a transaction is so important to the finance function
  • The accounting records: general or nominal ledger & trial balance
  • Debits and credits demystified
  • Income vs. expenditure, assets vs. liabilities, capital vs. revenue expenditure
  • P&L account vs. balance sheet: categorizations and their inter-relationships
  • Accounting concepts and the accounting rule book: accruals, prudence, substance over form, true & fair, materiality
The Key Financial Statements
  • Understanding the accounting cycle
  • The five main accounts in financial statements
  • Income statement
  • Accrual basis versus cash basis
  • Balance sheet
  • The balanced status
  • Statement of owners’ equity
  • Statement of cash flows
  • Wrapping-up: the cycle of financial statements
  • External and internal auditors’ responsibilities
Working with Data
  • Outlining and subtotals
  • Outlining and consolidating data
  • Creating Nested subtotals
  • Creating and using names
  • Keyboard Shortcuts to use Names
  • Assigning values to Names

Exercise: Applying the accounting concepts

The Driving Forces Behind Financial Information
  • Overview of the accountant’s role and the content of the annual report
  • Understand the role of the finance function and how the information you provide is used
  • Know where to find useful information
  • An introduction to the Balanced Scorecard
  • The users of financial information and meeting their different needs
  • The finance function, financial vs. management accounting and the treasury function
  • Tailoring your priorities to match your objectives
  • Setting realistic goals you can apply to your areas of responsibility
Analysing and Interpreting Financial Information
  • Learn what a set of accounts reveals about a company’s current situation, profitability and future prospects
  • Discover how to effectively use all the available information
  • Understand why and how figures can be manipulated
  • Understand working capital management
  • Learning the jargon and recognising what is revealed in the financial press
  • Analytical review and ratio analysis:
  • Profitability (return on capital employed, profit margin and non-standard performance measures)
  • Efficiency (asset / stock turnover, debtor / creditor days)
  • Investment (interest / dividend cover, earnings per share, dividend yield)
  • Gearing
  • Liquidity (current ratios, working capital, cash cycles)

Exercise: Analysing the financial statements of two companies in order to evaluate their relative strengths and weaknesses

Cash Flow & Cash Management
  • • Understand why and how cash is king
  • • Focus on ways a business manages this most important resource
  • • Highlight the importance of cash flows in analysis and forecasting
  • • Cash vs. profit: why profit does not tell the full story and the importance of cash
  • • Examining how cash flow statements indicate the stability, adaptability and long term potential of a company
  • • Cash flow forecasts as a planning tool
  • • How the treasury manages cash

Exercise: Identifying cash movements to predict future cash flows

Tools For Effective Business Decisions
  • • Breaking down barriers between the management accounting and operations departments
  • • Determining why budgets play a key role and are not simply an annual chore
  • • Integrating budgets with strategy – the Balanced Scorecard in practice
  • • Purposes of budgets: the link between the strategic plan and the company culture
  • • Budgets as motivators
  • • Tailoring your priorities to match your objectives
  • • Setting realistic goals you can apply to your areas of responsibility
Planning and Budgetary Control
  • • How your role relates to the budget cycle
  • • Key budgeting techniques
  • • When, why and how you should use zero / priority based budgets
  • • Post-budgeting review: variance analysis – how and why it is performed
  • • Understanding the difference between budgets and cash flows and how they relate to one another

Exercise: “Budgeting – The Big Picture”: How you can make budgeting more efficient and improve on existing practices

Costing – Essential Tools for Effective Management
  • • Demystifying management accounting
  • • Introduction to key costing techniques
  • • Evaluate the real usefulness of costing techniques for accurately calculating and ensuring profitability
  • • Overview of costing principles
  • • Understanding the differences between direct and indirect costs
  • • Overheads: allocation, apportionment and absorption
  • • Activity Based Costing
  • • Break-even analysis: ensuring fixed costs are covered
  • • Costing for control: standard costing

Exercise: Determining accurate cost per unit for effective decision making

Pricing for Profit – Practical Pricing Theory
  • • Obtain a clear understanding of the models, myths and mistakes in pricing strategy
  • • Create confidence when applying these ideas in practice
  • • The 10 key fallacies of pricing and determining appropriate responses
  • • How to price effectively for profit
  • • Evaluating pricing methods: which should you use and when?
  • • Cost based pricing: a value-added approach
  • • Customers: an “outside in” pricing
  • • Competitors: predict their price

Exercise: “Beating the Competition”

6 Great Reasons Why You Should Attend This Course
  • Understand the “big picture” of accounting and finance and how this relates to business decision-making
  • Confidently communicate with accountants in their own language
  • Effectively analyse the impact of your financial decisions on your business
  • Recognise the importance of, and gain the skills necessary to produce realistic and useful budgets
  • Appreciate the fundamental dynamics of the pricing arena and solutions to pricing issues
  • Discover how to “read” and analyse a set of company accounts
Course Facilitator
Aly Rehan Khan
ACMA –CGMA, CIMA UK
ITIL FoundationMr.
Aly Rehan is a highly profound and effective corporate trainer with decades long experience in numerous industries including banking, manufacturing and training. Currently engaged with top training and consulting companies in Middle East as freelance trainer and consultant and working for development of most precious resource of business organization i.e. their employees. His key topics include IFRS, Financial Management, Financial Control, Financial Statement Analysis, Cash Flow Management, Strategic Management, Global Corporate Reporting, Corporate Governance and Reporting. He bears extensive training experience in the government and private sector in UAE from mid to senior management. Appended to this profile are some of his recent trainings he delivered with a WOW experience. Besides an Associate of Certified Management Accountant and Certified Global Management Accountant from Chartered Institute of Management Accountants UK ACMA &CGMA, he holds a similar qualification in Management Accountancy from Pakistan. He is also a Diplomat Associate of Institute of Bankers, Pakistan and a to be Chartered Accountant from Institute of Chartered Accountants of Pakistan. He has a 9 years of experience of working with a global bank in various capacities including head of their training college, a four year articles with a reputed chartered accountant firm.

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