No-one in business will succeed if they are not financially literate - and no business will succeed without financially-literate people. This is the ideal programme for managers and others who don't have a financial qualification or background but who nonetheless need a greater understanding of the financial management disciplines essential to your organisation.
This course will give the participants a sound understanding of financial reports, measures and techniques to make them even more effective in their roles. It will enable participants to:
Overcome the barrier of the accountants' strange language
Deal confidently with financial colleagues
Improve their understanding of your organisation's finance function
Radically improve their planning and budgeting skills
Be much more aware of the impact of their decisions on the profitability of your organisation
Enhance their role in the organisation
Boost their confidence and career development
1 Review of the principal financial statements
What each statement containsOutlineDetail
Not just what the statements contain but what they mean
Balance sheets and P&L accounts (income statements)
Cash flow statements
Detailed terminology and interpretation
Types of fixed asset - tangible, etc.
Working capital, equity, gearing
2 The 'rules' - Accounting Standards, concepts and conventions
Fundamental or 'bedrock' accounting concepts
Detailed accounting concepts and conventions
What depreciation means
The importance of stock, inventory and work in progress values
Accounting policies that most affect reporting and results
The importance of accounting standards and IFRS
3 Where the figures come from
Accounting records
Assets / liabilities, Income / expenditure
General / nominal ledgers
Need for internal controls
'Sarbox' and related issues
4 Managing the budget process
Have clear objectives, remit, responsibilities and time schedule
The business plan
Links with corporate strategy
The budget cycle
Links with company culture
Budgeting methods'New' budgetingZero-based budgets
Reviewing budgets
Responding to the figures
The need for appropriate accounting and reporting systems
5 What are costs? How to account for them
Cost definitions
Full / absorption costing
Overheads - overhead allocation or absorption
Activity based costing
Marginal costing / break-even - use in planning
6 Who does what? A review of what different types of accountant do
Financial accounting
Management accounting
Treasury function
Activities and terms
7 How the statements can be interpreted
What published accounts contain
Analytical review (ratio analysis)
Return on capital employed, margins and profitability
Making assets work - asset turnover
Fixed assets, debtor, stock turnover
Responding to figures
EBIT, EBITEDIA, eps and other analysts' measure
8 Other key issues
Creative accounting
Accounting for groups
Intangible assets - brand names
Company valuations
Fixed assets / leased assets / off-balance sheet finance