Understanding accounting and finance terminology and theory
- Understanding the difference between management and financial accounting
- Cash versus accrual accounting
Financial statement analysis
- What is financial statement analysis and why it is an essential tool for any senior manager
- Understand and analyse the 3 major financial statements:
- Income statement (statement of financial performance)
- Balance sheet (statement of financial position)
- Cash flow statements (financial analysis of a business)
- Ratio analysis, including consideration of a range of profitability, liquidity and long-term stability ratios
Budgeting, planning and cost management essentials
- Understanding the source (direct and indirect) and behaviour (fixed/variable) of costs
- Reviewing planning cycles and how budgeting fits in
- The key steps in budget preparation
- Forecasting techniques, performance reporting and variance analysis
- Monitoring and control processes
Overview of capital investment decision making
- How owners and managers financially analyse capital expenditure including return on investment
- Payback period, discounted cash flow – DCF; NPV, IRR; time value of money
- Important factors to take into account in a lease versus buy decision
Bringing it all together - Embedding financial acumen
- Financial management in the workplace
- Implementing lessons learned in the day-to-day operation of the organisation
- Improving the financial awareness of others
