Business Finance & Accounting for the Non Financial Manager

Event Details

    Why Finance, Accounting & The Numbers Matter

    • Financial jargon demystified
      • Accounting records, ledgers and trial balance
      • P&L account and balance sheet
      • Debits vs credits
      • Income vs expenditure
      • Assets vs liabilities
      • Capital vs revenue expenditure
    • The importance of timing: when a sale becomes a sale
    • Accountability and responsibility
    • Accounting & report requirements
      • Accounting standards, requirements & business size
      • IRD requirements
      • Private vs public companies


    The Key Building Blocks Giving You Control

    The Financial Statements decoded

    • Differentiating income, operating & capital expense items
    • Sales & cost recognition - timing
    • How you can put the pieces together to measure your profit & business success

    Analysing your balance sheet

    • How the Balance Sheet reveals the worth of an established business
    • Current & non- current assets vs liabilities
    • Understanding depreciation and amortisation
    • Linking the Financial Statements to the balance sheet
    • Business worth – understanding shareholder equity

    Exercise: Analyse the financial statements of two companies in order to understand and evaluate their strengths, weaknesses and opportunities

     Managing Your Cash For Business Success

    How Your Business Activity Drives Cash Flow

    • Pulling apart the concepts of cash flow and profit
    • The importance of fully understanding cash flow drivers and the levers to manage them
    • How cash flow statements indicate the stability, adaptability and long-term potential of a company
    • Credit and cash flow
    • Quantifying your cash needs over time – cash flow forecasts

    Depreciation and amortisation

    • How depreciation impacts budgets over time
    • Depreciation calculation

    Understanding working capital management

    • Return on capital employed
    • Profit margin
    • Efficiency measures (asset/stock turnover)
    • Debtor/creditor days
    • Gearing & liquidity

    Exercise: Cash flow identification

    Managing a profit centre

    Which cost method is best for your business?

    • Understanding the differences between direct and indirect costs, overheads etc
    • Fixed & variable costs
    • Break-even analysis to ensure fixed costs are covered

     

    How discounting can easily make you a Winner or a Loser

    • How discounting may energise sales
    • The corrosive impact on margin

    Exercise: Study examples that reveal the impacts on margin of various pricing and discount decisions.
     

    A New Manager’s Guide To Budgeting

    Budgets are more than numbers

    • Revealing the purpose of budgets – how to understand your organisation’s strategy and link your business unit’s goals through a budget
    • Your budget as a motivator
    • Goal setting – striking the right balance between stretch and realism
    • The relationship between your budget and how your Executive Leadership Team is measuring your performance

    Types of budgets

    • Cost-plus
    • Zero-based
    • Rolling Budgets

    Using your budgeting as a planning & control tool

    • The budget isn’t an annual chore, it’s how you control your business
    • Key budgeting techniques and approaches
    • How to forecast sales revenues and expenses
    • The budget and reality

    Post-budget review

    • The importance of not leaving the budget in the top draw
    • Uncovering & investigating budget variance
    • Variance reporting and analysis

    Exercise: "Budgeting Setting"

     

    Bringing It All Together

    • Applying financial tools and concepts in the real world
    • The Annual Report – what does it tell us about company health?
    • Recognising traps in reporting and how the numbers are presented


     

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