Customized Onsite Programs / Finance for Non-Financial Managers Training

Finance for Managers and Professionals

Financial Acumen for Non-Financial Professionals

Description:
Are your managers lacking Business Literacy and Financial Acumen at a time when you need it most?

Can they calculate the ROI of an important project or conduct a breakeven analysis?

A majority of U.S. managers surveyed by the Business Literacy Institute were unable to distinguish profit from cash, and many didn't know the difference between an income statement and a balance sheet.  Not knowing the basics of finance can cramp a manager's performance and confidence.  It also can negatively impact their perception in the eyes of their boss and team.

This two-day customized financial acumen workshop is directed toward professionals in non-financial areas who are responsible for financial and business outcomes.

The customizable Finance for Managers program provides the managerial tools to measure the financial 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 as managers. This Finance for Managers program is customized to use the financial statements, language, and industry metrics of your organization.

The overall objectives of this hands-on Finance for Managers 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 managers to improve financial planning techniques and operational decisions.

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