Business Finance & Accounting for the Non Financial Manager

17 - 19 Sep 2019Wellington$2699 + GST
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 impact of different business structures: private company, sole trader, partnership

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
  • Fixed and current assets vs liabilities
  • Understanding depreciation and amortisation
  • Linking the Financial Statement 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

Your Cash Flow Lifeblood – 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
  • Investment (interest, dividend yield)
  • Gearing & liquidity

Exercise: Cash flow identification

Project & Investment Appraisal Decision Making

Evaluating a project or investment and its impact on your business’ cash flow and profitability

  • Investment evaluation tools and measures

Determining how Cost of Capital and WACC are determined

  • Return on capital employed: what is it and what are its limitations?
  • Payback periods: the importance of understanding your investment return horizon in investment appraisal
  • Discounted cash flow techniques: the vital importance of net present value
  • Sensitivity analysis: how sensitive are key decisions to potential changes in circumstances and how they may influence investment return?

Exercise: Evaluating the investment decision

Managing a profit centre

Which cost method is best for your business?

  • Understanding the differences between direct and indirect costs, overheads etc
  • Absorption, marginal, activity-based costing techniques
  • Determining costs in service businesses
  • Break-even analysis to ensure fixed costs are covered
  • Costing control techniques & how to avoid costing traps

The challenges of project costs

  • Project duration and future costs
  • How to leverage debt
  • Anticipating problems with cost control

Price for profit – practical tools & tips for pricing & discounting

  • An overview of different pricing models and when & how they are best deployed
  • The fundamentals of how to price for profit
  • The key influencers on setting price:
    • Price models
    • Costs
    • Margin
    • Value
    • Customer
    • Competitors
  • 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

Comparing budget approaches

  • Top down
  • Bottom up

Types of budgets

  • Incremental
  • Zero-based
  • Rolling
  • Others

Using your budgeting as a planning & control tool

  • The budget isn’t an annual chore, it’s how you control your business
  • There are limits however
  • 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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