Financial Management for Non-Financial Professionals

This day introduces participants to the business finance environment and explains the purpose and uses of accounting. Delegates learn about financial statements and how cash flow relates to profit and financial position. The topics covered will include:   

• The Business Environment                  
• The Uses and Purpose of Accounting   
• Users of Accounting and Financial Information                        
• Accounting Terminology
• The Dual Entry Accounting System  
• The Income Statement – financial performance                                    
• The Balance Sheet – financial position
• Cash Flow vs. Profit
• The Cash Flow Statement - Where the cash comes from and where it goes to?
• The Links between the Cash Flow Statement, Income Statement and Balance Sheet      

This day focuses on analysing financial statements and applying analytical techniques to interpret financial performance. Participants explore ratio analysis and predictive indicators of business viability. The topics covered will include:   

• Accounting Conventions and Accounting Standards (IFRS)
• The Key Elements of Published Annual Financial Reports (AFR)            
• Techniques for Interpreting the Financial Statements - Common-Size Analysis and Ratio Analysis
• Financial Statements analysis – Case Study
• Cash Flow Ratios – A different perspective                      
• Predicting Business Failure with Ratios and other Key Indicators
• Publicly Available Sources of Corporate Financial Information

This day emphasises budgeting, cost analysis, and break-even techniques as tools to support profitability and decision-making. Delegates develop practical budgeting approaches that influence performance outcomes. The topics covered will include:   

• Management Accounting – The Internal Perspective
• The Importance of Cost Analysis – materials, labour and overheads
• Understanding Overheads, and How they should be treated in internal analysis and decision-making
• Cost / Volume / Profit (CVP) Analysis and The Break-even Point
• Using CVP Analysis to make Profitable Decisions
• The Purpose and Importance of Budgeting
• Preparing and Implementing Your Budget
• Different Budgeting Models – Are they relevant for your business?
• Is budgeting an effective management technique?
  • Issues of Risk, Uncertainty, Motivation and Asymmetric Behaviour

This day explores budgetary control and techniques for evaluating investment opportunities. Participants learn how to analyse variances and apply appraisal models like NPV and IRR. The topics covered will include:  

• Budgetary Control with Monthly Management Reports
• Standard Costing and Variance Analysis
• Case Study on Calculating and Interpreting Variances
• Internal Growth Strategies – Types of Capital Investment
• Basic Appraisal Techniques as a Filtering Process – ARR and Payback
• Why you should consider the time value of money?
• Discounted Cash Flow Appraisal Techniques – NPV and IRR
• Practical Issues to consider in NPV Appraisal - inflation, capital rationing, risk and uncertainty
• Investment Appraisal Exercises using Spreadsheets

This day focuses on financing principles, types of finance, and strategic growth and reorganisation strategies. Participants explore cost of capital models and financing options that enhance organisational growth. The topics covered will include:  

• Financing the Business – Why and When
• Financing Principles, Short-term vs. Long-term, Debt vs. Equity
• Sources and Types of Finance
• Determining the Cost of Long-term Finance - The cost of Capital Models:
  • Cost of Equity (Ke) – Dividend Valuation Model
  • Cost of Equity (Ke) - Capital Asset Pricing Model
  • Cost of Debt (Kd)
  • Weighted Average Cost of Capital (WACC)
• Review of External Growth Strategies:
  • Mergers, Acquisitions and Joint Ventures
• Review of Restructuring Strategies: Demergers, Spin-offs, Unbundling, MBO, MBI, BIMBO