Finance for Non-financial Managers

Overview:

Managers often fall behind when it comes to finance. More often than not this is due to a lack of understanding, jargon, fears of finance and an inability to see the importance of a financial strategy and how it will impact on their behaviour and decision making. Managers who are comfortable and competent in understanding and managing the financial aspects of their day-to-day business benefit from improved business skills, internal respect from colleagues and senior management, enhanced external relations, better cashflow management and ultimately improved career prospects.

Objectives:

By the end of this course delegates will be able to:

• Understand the basic principles and terminology of finance and interpreting key financial information
• Communicate and present your financial position and budgets more credibly to your colleagues and board
• Differentiate turnove, profit and cash and understanding the methodologies of the finance function
• Read and understand annual reports and company accounts
• Calculate profitabliliy, liquidty and management of working capital
• Understand shareholder value and the stock market
• Evaluate projects from a financial perspective

Topics covered:

The need for Financial Information

• Why do we need financial information?
• What are the differences between management accounts and statutory accounts?
• Understand the language of finance, company accounts and annual reports

The Importance of Return on Capital Employed

• Why ROCE is so important
• How to affect ROCE

Accounting Principles

• What are the main accounting principles?
• Why and how are they important?

Profit and Loss Account

• The structure of the P&L Account
• The difference between expenditure and capital expense

Balance sheets and Interpretation

• Content and layout of balance sheets
• Working Capital
• Interpretation: Fact vs Judgement

Depreciation of fixed assets

• Why fixed assets are depreciated
• The different types of depreciation

Corporate Valuation

• The indicators used in corporate valuation

Business Health Check

• Why carry out a business health check
• Taking a structured approach to carrying out a business health check

Marginal Performance Improvement

• The importance of marginal performance improvements
• The link between cost of sales, selling price, volume and expenses

Cost, Volume, Price and Breakeven

• How to calculate breakeven
• How to determine a selling price

Debt and Equity

• How to calculate the debt to equity ratio
• Getting the balance right

Capital Project Appraisal

• Why capital projectsshould be appraised
• Different appraisal methods

Value Added Tax

• How is VAT calculated?
• Submitting a VAT return

Cash Flow

• The difference between profit and cash
• Cash flow forecasting
• Cash flow statements

Duration: 2 days
Maximum Places: 12
Group Price: £1,700

For more information
please contact us on
029 20 491 491

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