Fundamentals of Finance & Accounting

Fundamentals of Finance & Accounting:
Understand the Dynamics of Numbers & Make Better Financial Decisions

OBJECTIVES

• Become comfortable with using information from real financial statements
• Develop experience in using accounting data to evaluate a firm’s current performance and to forecast future performance
• Master the skills to value a firm using accounting information along with all other information
• Critically examine the quality of information provided by companies
• Understand Accounting terminology and policies
• Understand the relationships between planning, marketing, and accounting and the budgeting process
• Review the income statement, balance sheet, and statement of cash flows
• Be able to add credibility to their budgets Financial statement analysis
• Be able to understand the importance of cash flow forecasting
• Know the difference between cash flow and profitability

WHO SHOULD ATTEND?

This course is designed for personnel who do not have an in-depth knowledge of accounting and Finance, and who need to acquire a broader understanding of these important topics to improve their current role or plan their future career. Non-financial personnel who use financial information in their job and are called on to make financial decisions. Sales and marketing executives, project professionals, internal auditors, and any non-financial professionals who needs to read a company’s financial and other accounting reports. It will also be of benefit to vice presidents of manufacturing, marketing or engineering, professionals of human resource, project professionals.

COURSE OUTLINE

DAY 1

The Basics

• Accounting Terminology and Policies
• Accounting as an information system
• The accounting equation- what does it mean
• Generally accepted Accounting Principles
• Differentiating between cash and accrual basis accounting
• Basic cash flow statements
• Walking through an Annul Report
• The annual report package
• The role of external auditor
• The accountant’s report and auditor’s opinion

DAY 2

Budgeting in today’s competitive business

• The Budgeting Process
• The role of budgeting
• Annual budgeting process
• Identifying and resolving budgeting variances
• Different budgeting systems in use today
• Budgeting tips and techniques

DAY 3

How to interpret and Financial Statement Analysis

• Preparing income statement & balance sheet
• Financial and liquidity ratios
• The cash conversion cycle
• Profitability and gearing ratios
• Du Pont Formula
• Financial & Non-financial analysis 

DAY 4

Planning for Profit

• Plan for cost reduction and profit improvement
• Fixed and variable costs income statement
• Break-even analysis
• Contribution margin
• The importance of fixed-cost allocation

DAY 5

Cash Flow Analysis & Forecasting

• Capital budgeting
• Weighted Average Cost of Capital
• Present Value
• Internal Rate of Return – method
• Profitability Index
• Discounted cash flow