Customized Onsite Programs / Finance for Non-Financial Managers Training

Finance for Managers and Professionals

Financial Acumen for Non-Financial Professionals

Description:
This two-day workshop is directed toward professionals in non-financial areas who are responsible for financial outcomes.

The customizable course provides the tools to measure the impact of their decisions on profitability and cash flow. They will learn the language of finance and put into practice the financial tools that will assist them in making better decisions. This program is customized to use the financial statements, language, and industry measurements of the your organization.

The overall objectives of this hands-on workshop are to:

• Provide a basic understanding of financial statements and how they relate to business activities.
• Create a clear understanding of how management actions impact financial performance.
• Build a foundation in financial concepts and processes that can enable participants to improve financial planning techniques and operational decisions.

Typical Learning Objectives:

• How to read and interpret a balance sheet and income statement.
• The basics of accounting for the business cycle.
• The nature of costs and how they impact break-even, profit and changes in volume.
• Financial ratio analysis.
• Project ranking using Net Present Value and Internal Rate of Return.
• Planning and budgeting.

Target Audience:

• Managers, individuals, and project leaders.
• Non-financial managers with responsibility for generation of revenue, cost centers, purchasing of assets, or expending resources.

Standard Workshop Outline:

1 - Financial Statement Fundamentals

• Understand the basic transactions needed to account for a business cycle.

• Understand the relationships between the Balance Sheet and Income Statement.

• Know the five big-picture choices of accounting.

2 - The Balance Sheet

• Identify and describe the difference between assets, liabilities, and equity.

• Understand the impact of depreciation on cash flow, net income and management behavior.

• Understand when to forecast or accrue potential liabilities.

• Analyze a Balance Sheet using ratios

3 - The Income Statement

• Interpret the financial information on the Income Statement.

• Define the relationship between the major components of the Income Statement, also known as the P&L.

• Calculate and analyze profitability and growth ratios

• Complete a Common Size Analysis.

• Complete a Horizontal Analysis

• Understand the impact of their decisions on the Income Statement

4 - Cost Analysis

• Determine Fixed versus Variable Costs.

• Understand the cost drivers behind Variable Costs

• Understand the relevant range over which Fixed Costs remain fixed

• Understand Contribution Margin and the Contribution Margin Income Statement.

• Calculate Break-Even and Target Profit levels in Sales Units and Sales dollars using the Contribution Margin approach.

• Analyze the impact of changes in volume on Gross Margin and Net Income.

5 - Financial Ratio Analysis  

• Expand on their use of financial ratios to analyze financial statements.

• Understand the drivers behind utilization ratios.

• Use financial ratio analysis to identify potential problems whose symptoms may be reflected on the income statement or the balance sheet.

• Apply the concept of ratio analysis to day-to-day operations.

6 - Forecasting and Budgeting  

• Understand the basics of the forecasting and budgeting process

• Establish a link between a company’s mission and objectives and your cost center’s budget.

• Develop an effective resource plan.

• Understand how to prioritize spending based on financial targets and business objectives.

• Analyze changes in the forecast using Contribution Analysis

7 - Strategic Investments Analysis

• Understand the importance of strategic investment analysis to the firm

• Understand the concept of the time value of money

• Analyze and prioritize projects using the following modeling tools:

  • Cash Payback Model

  • Net Present Value Model

  • Internal Rate of Return Model

• Understand the impact of other non-financial factors in the decision-making process