Finance for Non Financial Managers

Course Overview

Non-Financial managers are often at a strategic disadvantage compared with their financially literate colleagues, peers, customers and suppliers. Whatever your own particular area of expertise, your performance will improve if you understand the basics of financial management. Financial competence will give you an informed view about your organisations performance and will allow you to play a full role in helping to develop plans to maximise its future prosperity.

This two day course de-mystifies financial jargon and explains in layman’s language some of the key cornerstones of accountancy practice.

This course is suitable for non-financial managers from both the public and private sector organisations.

What you will learn

At the conclusion of this course delegates will be able to:

• Understand basic finance & financial information/jargon
  
• Understand budgets and costs
  
• Understand and be able to analyse management accounts
  
• Communicate effectively with financial executives and staff

Course Content

The Finance for Non-Financial Managers training course covers the following topics:-

Introduction

• The rules Accountants follow. (UK GAAP)
  
• Accountability and responsibility for financial information
  
• The purpose of Accounting: Who uses accounts and why
  
• Where can I find out about the financial position of my organisation / my competitors organisation.

Profit & Loss Account

• How to measure profit and business success
  
• The break-even point
  
• Sales recognition – The Rules
• Getting behind the financial jargon (PBT, EBIT, EBITDA)

Balance Sheet

• Evaluating the ‘worth’ of an established business
  
• Understanding the difference between fixed and current assets and liabilities
  
• Linking the profit and loss account to the balance sheet
  
• Working capital, what is it? How to monitor it,
  
• Getting behind the financial jargon (Fixed or current assets, net assets, equity, shareholders’ funds).

Cash Flow

• Differentiating between cash flow, profit and net worth
  
• Making the connection between cash management to line management
  
• How credit (or lack of it) affects cash flow?
  
• How to determine how much cash you will need?
  
• Sources of funding

Budgeting

• Types of Budgets
  
• The budget process
  
• Budget Constraints
  
• Using the budget to manage the business
  
• Apportioning overheads
  
• Differentiating between capital and revenue expenditure and the effects of depreciation
  Forecasting sales revenues and expenses

Ratio’s

• Debtor / Creditor Days
  
• Inventory days
  
• Acid Test Ratio
  
• Cash cycle
  
• Return on capital employed (ROCE)
  
• Gross Profit Percentage
  
• Net Profit Percentage (also EBIT)
  
• Sales per person

Courses are limited to a maximum of twelve delegates.
This is a non-residential training course.

Prices are correct at the time of publishing, but may be varied in line with market conditions from time to time.