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