By the end of this programme, participants will:
- Understand the importance of financial information and have a greater understanding of financial jargon and terminology
- Be aware of the key financial statements, how to interpret them and assess a company’s financial strengths and weaknesses
- Understand the costing process, budgeting and the budgetary cycle
- Be able to appraise capital projects
- Be able to make better use of financial information to improve their decision making
DAY 1
Financial Information
- Why do we need financial information?
- Understanding the language of finance, company accounts and annual reports
- Case study
Accounting
- The main accounting principles
- The business cycle and the flow of money in a business
- Business Objectives
DAY 2
The Balance Sheet
- The balance sheet statement
- VIDEO – “The Balance Sheet Barrier”
- Purpose and format
- Interpretation
- Management of working capital
Cashflow
- The purpose and format of the cashflow statement
- Interpretation
- The difference between profit and cash
- Cash flow forecasting
- Exercise
DAY 3
Profit and Loss
- Purpose and format
- Interpretation
Company Valuation
- The indicators used in company valuation
- Case study
Ratios
- Key financial ratios and how to interpret them
- Exercise
DAY 4
Costs
- The costing process – relevant costing
- Cost allocation
- Cost behaviour
- Cost-volume-profit analysis
- Calculating breakeven
- Cost control and reduction
- Exercise
- Budgeting and the Budgetary Cycle
- Case study
DAY 5
Capital Expenditure Appraisal
- Investment appraisal techniques:
- Net Present Value
- Pay back method
- Discounted cashflow
- Exercise
- Depreciation
- Methods of depreciation
- Review of programme
- Personal action plan
- Close of programme
