Advanced Finance for Non-Financial Professionals

Introduction

This course is designed to provide non-financial professionals with a comprehensive understanding of essential and advanced financial principles and practices. Over the course of 15 days, participants will acquire the skills needed to interpret financial statements, analyze financial data, manage working capital, and make informed budgeting and investment decisions. The course will also emphasize negotiation skills, especially in the context of financial compensation and agreement settlements, making it ideal for executives and non-financial managers. Whether you are looking for finance training for non-financial managers, finance courses for executives, or business finance essentials, this course will equip you with a solid foundation in financial literacy for managers and business leaders.

Course Objectives

• Provide a foundational understanding of key financial statements and their components.
• Develop analytical skills for interpreting financial data and making informed business decisions.
• Enhance participants' ability to manage working capital and budgets effectively.
• Introduce capital budgeting techniques and their application in investment decisions.
• Build negotiation skills related to financial compensation and settlements, essential for non-financial professionals in leadership roles.

Course Outlines

Day 1: Introduction to Financial Statements

• Overview of key financial statements.
• Understanding the accounting cycle.
• Introduction to the five main accounts in financial statements.
• Income statement: purpose and significance.
• Accrual basis versus cash basis accounting.

Day 2: Income Statement Analysis

• Detailed exploration of the income statement.
• Understanding revenues, expenses, and net income.
• Performance measurement through the income statement.
• The impact of accrual versus cash accounting on the income statement.
• Practical exercises on reading and interpreting income statements.

Day 3: Balance Sheet Analysis

• Introduction to the balance sheet.
• Understanding assets, liabilities, and equity.
• Assessing financial position using the balance sheet.
• Comparison between the balance sheet and income statement.
• Practical exercises on analyzing balance sheets.

Day 4: Statement of Owners’ Equity

• Overview of the statement of owners' equity.
• Understanding changes in equity over time.
• The impact of business activities on equity.
• The relationship between the balance sheet and the statement of owners' equity.
• Practical exercises on preparing and analyzing the statement of owners' equity.

Day 5: Statement of Cash Flows

• Introduction to the statement of cash flows.
• Importance of cash flow in financial management.
• Breakdown of operating, investing, and financing activities.
• Cash flow analysis for business decision-making.
• Practical exercises on reading and interpreting cash flow statements.

Day 6: Wrapping Up Financial Statements

• The cycle of financial statements: integration and flow.
• Connecting the income statement, balance sheet, and cash flow statement.
• Introduction to financial statement consolidation.
• The role and responsibilities of external auditors.
• The role and responsibilities of internal auditors.

Day 7: Financial Ratios and Analysis

• The importance of financial ratios.
• Horizontal analysis: tracking performance over time.
• Vertical analysis: common size financial statements.
• Liquidity ratios: assessing short-term financial health.
• Practical exercises on calculating and interpreting financial ratios.

Day 8: Advanced Financial Ratios

• Solvency ratios: assessing long-term financial stability.
• Activity ratios: evaluating asset management efficiency.
• Profitability ratios: measuring business performance.
• Limitations of financial ratio analysis.
• Practical exercises on advanced ratio analysis.

Day 9: Trend and Comparative Analysis

• Horizontal and trend analysis techniques.
• Comparative analysis: benchmarking against industry standards.
• Common size financial statements for vertical analysis.
• Building blocks analysis: an integrated approach.
• Practical exercises on trend and comparative analysis.

Day 10: Working Capital Management Basics

• Definition and importance of working capital.
• Strategies for managing current assets effectively.
• Balancing profitability and liquidity.
• Strategies for managing current liabilities.
• Practical exercises on working capital management.

Day 11: Advanced Working Capital Management

• The trade-off between profitability and certainty.
• Cash management strategies.
• Inventory management techniques.
• Managing accounts receivable and payable.
• Case studies on working capital management.

Day 12: Breakeven Analysis

• Defining fixed and variable costs.
• Contribution margin: calculation and interpretation.
• Computing the breakeven point.
• Sensitivity analysis: adjusting for different scenarios.
• Practical exercises on breakeven analysis.

Day 13: Decision-Making with Breakeven Analysis

• Applying breakeven analysis in business decisions.
• Using breakeven analysis for pricing strategies.
• The impact of changes in cost structure on the breakeven point.
• Sensitivity analysis: practical applications.
• Case studies on decision-making using breakeven analysis.

Day 14: Operating Budget Process and Techniques

• Introduction to the operating budget.
• Steps to budget development: planning and execution.
• Components of the master budget: sales forecasting and projections.
• Approaches to budgeting: incremental vs. zero-based budgeting.
• Budgetary control: monitoring and corrective measures.

Day 15: Capital Budgeting and Financial Negotiations

• Introduction to capital budgeting: concepts and techniques.
• The time value of money: understanding its importance in investment decisions.
• Calculating net present value (NPV) and internal rate of return (IRR).
• Financial negotiations: strategies for compensation discussions.
• Settling agreements for lawyers: best practices and case studies in financial negotiations.

Conclusion

By the end of this advanced finance course, participants will gain a deep understanding of financial literacy for managers and will be equipped to analyze and interpret financial data effectively. This course will enhance your finance professional skills and prepare you for taking on leadership roles where finance for non-financial professionals is essential. With an emphasis on financial decision-making and finance for non-financial managers training, participants will be well-positioned to apply these insights in real-world scenarios, making them proficient finance professionals capable of leading their teams through informed financial strategies.