Advanced Financial Management for Non-Financial Professionals

Advanced Financial Management for Non Financial Professionals

OBJECTIVES

• Provide a strategic view of the business environment
• Explain the nature and role of financial statements and their interpretation
• Use the necessary accounting and financial jargon to communicate effectively with the financial professionals
• Review the financial performance and financial position of an organization using the appropriate financial ratio and break-even analysis techniques
• Develop profit and cash flow budgets using traditional and activity based methods
• Assess the risk and uncertainty associated with alternative outcomes
• Use budgetary control to compare actual against planned performance and to identify corrective actions
• Evaluate investments in capital projects using DCF and other appraisal methods
• Identify the features of the alternative sources of business financing
• Appreciate the important role of strategic accounting in business performance improvement

WHO SHOULD ATTEND?

This seminar should be attended by sales and marketing executives, supply-stream professionals, project professionals, internal auditors, and any non-financial professionals who are required to read, interpret, and contribute to business financial reports. It will also benefit vice presidents of manufacturing, marketing, engineering, and human resources professionals, project professionals, attorneys, and CEOs who are involved with development of long-term customers, suppliers, outsourcing partners, and other global strategic alliances. It may also be beneficial to consultants and external accountants who work with professionals and executives, in the support of improvements to operational and financial processes.

COURSE OUTLINE 

DAY 1

A strategic view of the business environment

The accounting environment

• The uses and purpose of accounting
• Users of accounting and financial information
• Accounting terminology
• Cash versus profit
• Profit and profitability

The balance sheet – the financial position

• The structure of the balance sheet
• What does the balance sheet tell us about the company?
• Limitations of the conventional balance sheet
• The profit and loss account (income statement) – financial performance
• What is profit?
• The structure of the profit and loss account
• What does the profit and loss account tell us about the company?
• The links between the profit and loss account and balance sheet

DAY 2

The financial statements and financial analysis

The cash flow statement

• What is included in the cash flow statement?
• Why is cash flow so important?
• The structure of the cash flow statement
• The links between the cash flow statement, profit and loss account and balance sheet

The annual report and financial analysis

• The key elements of published reports and accounts
• Ratio analysis: profitability; efficiency; liquidity; investment; cash flow; the Dupont system
• Cash versus profit as a measure of performance, EBITDA and
• Predicting business failure – the Altman Z-score
• Sources of financial information

DAY 3

Budgeting and break-even analysis

Cost/volume/profit analysis

• Cost/volume/profit (CVP) relationships
• Break-even analysis
• The impact of cost structure changes
• Limitations of CVP analysis

Budgeting

• Purposes of budgeting
• The budget process, including activity based budgeting
• Uncertainty and risk – worst and best outcomes
• Motivation and the behavioral aspects of budgeting
• Problems in budgeting

DAY 4

Budgetary control, DCF and capital investment appraisal

Budgetary control

• Organizational and accounting control systems
• Standard costing
• Flexed budgets and variance analysis
• Types of variances and the reasons they occur
• Planning and operational variances

Capital investment decisions

• What is an investment?
• Investment appraisal criteria and investment decisions
• Time value of money
• Free cash flows
• Capital rationing and control of capital investment projects
• Risk and uncertainty and decision-making – sensitivity analysis

DAY 5

Financing the business and strategic accounting

Financing the business

• Sources of finance
• Gearing
• Weighted average cost of capital (WACC)
• Cost of debt and equity capital
• Risk, CAPM and the factor

Strategic accounting

• Outline of strategic management accounting
• Competitor information and strategic positioning
• Competitive advantage
• Strategic accounting systems, and the balanced scorecard