Finance for Non-Financial Professional

Introduction

Understanding financial principles is essential for success at any employment level, especially for non-financial professionals. The Finance for Non-Finance Professionals course is designed to transform financial and accounting concepts into practical decision-making tools you can confidently apply every day. Whether you are a manager, executive, or any professional outside the finance department, this course will provide you with the fundamental financial knowledge needed to enhance your job performance, improve budget management, increase potential profits, and evaluate the financial health of your organization. You'll also become familiar with the financial terminology used by finance and accounting teams, allowing you to engage more effectively with them. This course will equip you with the financial awareness crucial for advancing into senior management roles where financial acumen is vital for strategic decision-making.

Course Objectives

Upon completion of the course, you will be able to:

• Define the Four Key Financial Statements: Understand and interpret the balance sheet, income statement, cash flow statement, and changes in owner equity.
• Master Key Financial Terms: Grasp terms such as profit, margins, leverage, and other crucial financial metrics.
• Analyze Financial Health: Assess the financial health and condition of a company, division, or department, and use financial data for informed decision-making.
• Differentiate Between Accounting and Finance: Understand the distinction between accounting and finance, and how finance plays a critical role in business operations.
• Prepare Operating Budgets: Create operating budgets aligned with the strategic objectives of the organization.
• Apply Capital Budgeting and Cost-Volume-Profit Analysis: Learn to use capital budgeting techniques to evaluate investments and apply cost-volume-profit analysis to optimize business decisions.

Course Outlines

Day 1: The Key Financial Statements

• Understanding the Accounting Cycle: Introduction to the accounting cycle and how it reflects business activity.
• The Five Main Accounts in Financial Statements: Explore the fundamental accounts that appear in financial statements.
• Income Statement: Learn how the income statement serves as a tool for measuring performance.
• Accrual vs. Cash Basis Accounting: Understand the difference and how each method affects financial reporting.
• Balance Sheet: A tool for evaluating an organization’s financial position.
• Statement of Owners’ Equity: Explore how equity changes over time.
• Statement of Cash Flows: Understand the importance of cash flow in the organization.
• Auditors’ Responsibilities: Gain insights into the role of internal and external auditors.

Day 2: Analysis of Financial Statements

• Ratio Analysis: Learn why financial ratios are useful for evaluating company performance.
  • Liquidity ratios: Assess the ability to settle short-term liabilities.
  • Solvency ratios: Evaluate long-term debt repayment capacity.
  • Activity ratios: Measure asset management efficiency.
  • Profitability ratios: Understand the profitability of a company.
• Horizontal and Trend Analysis: Evaluate financial data over time for growth patterns.
• Vertical and Common Size Analysis: Standardize financial data to compare with other companies or industry benchmarks.
• Limitations of Financial Ratio Analysis: Understand the potential shortcomings of relying solely on financial ratios.

Day 3: Working Capital Management

• Definition of Working Capital: Understand the concept of working capital and how it affects day-to-day operations.
• Working Capital Management Strategies: Learn strategies for managing current assets and liabilities.
• Balancing Profitability and Liquidity: How to ensure business growth while maintaining liquidity.
• Breakeven Analysis: Calculate fixed and variable costs to determine breakeven points.
• Sensitivity Analysis: Evaluate how changes in assumptions can impact business decisions.

Day 4: Operating Budget Process and Techniques

• Operating Budget Essentials: Understand the purpose and components of an operating budget.
• Master Budget Components: Learn how to develop and manage a master budget.
• Sales Forecasting: Techniques for projecting future sales and their impact on the budget.
• Approaches to Budgeting:
  • Incremental budgeting: Adjusting past budgets.
  • Zero-based budgeting: Building budgets from scratch based on activities.
• Budgetary Control and Correction: Monitor and adjust budgets to maintain financial control.

Day 5: Capital Budgeting and Investment Decisions

• Capital Budgeting Techniques: Learn how to assess long-term investments using techniques like Net Present Value (NPV) and Internal Rate of Return (IRR).
• Time Value of Money: Understand the principle that money available today is worth more than the same amount in the future.
• Rate of Return for Investments: Calculate the rate of return needed to justify investments.
• Examples of Cash Inflows and Outflows for Projects: Apply budgeting concepts to real-world scenarios.
• Recap of Financial Management: Conclude with a summary of the key concepts in finance for non-financial executives and explore the interconnections between finance and accounting.

Why Attend This Course: Wins & Losses!

• Comprehensive Financial Knowledge: By attending this course, you will gain a comprehensive understanding of key financial concepts and learn how to use them to enhance decision-making in your role.
• Increased Confidence in Financial Discussions: Whether you're a non-financial manager or executive, you will become comfortable speaking the language of finance, improving your ability to engage with finance teams.
• Better Budget Management: Learn to prepare, manage, and adjust budgets effectively, which is crucial for making informed decisions that align with strategic objectives.
• Improved Decision-Making: With knowledge of capital budgeting and cost-volume-profit analysis, you'll make better investment decisions and contribute to the financial growth of your organization.
• Preparation for Senior Roles: This course will prepare you for senior management positions where financial literacy is a key competency for success.

Conclusion

The Finance for Non-Finance Professionals course provides non-financial managers and executives with the essential skills they need to succeed in today’s business environment. Whether you're looking to improve your budget management, understand capital budgeting, or develop financial acumen to make more informed decisions, this course covers all the fundamental concepts. By demystifying complex financial terminology and concepts, you’ll be better prepared for senior management roles and equipped with the tools to lead with confidence. Don't miss this opportunity to boost your financial literacy and become a more effective, well-rounded professional!