Finance for Project Managers

Introduction - Project Managers often make important financial decisions and manage budgets of varying sizes which will impact upon the financial performance of a business, without receiving adequate financial training. This course is designed for project managers who require a sound understanding of finance enabling them to participate confidently in financial discussions and decision making. Please note that we will attempt to make this very dry subject highly informative but also interesting and stimulating where possible.

Course Aim

• To provide practicing Project Managers with appropriate Financial Skills and to improve confidence in terminology and basic financial management.

Content Budgets

• The need for financial planning
• Financial terminology and concepts - accruals, depreciation, prudence, consistency
• Nature of uses of budgets
• The budgeting process
• Types of budget - profit and loss, cash flow forecast, balance sheet projections
• Compiling budgets
• Monitoring and review procedure

Income and Expenditure

• Revenue versus capital expenditure
• Cost behaviour - fixed and variable costs
• Costing - methods of apportionment (absorption/marginal)

Analytical Tools

• Break even point
• Variance analysis

Core Financial Measurements

• Payback Calculation Method
• Net Present Value (NPV)
• Discounted Cash Flow (DCF)
• Internal Rate of Return (IRR)
• Return on Capital Employed (ROCE)

Course Includes Lunch/refreshments and course materials