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Finance For Non-Finance Professionals

Course Overview

Unlock Your Professional Potential with ‘Finance for Non-Finance Professionals’! Our course exceeds traditional financial and accounting concepts, shaping them into practical decision-making tools applicable to your daily responsibilities. It allows you to enhance budget management, maximize potential profits, and critically assess the financial performance of business activities.

Master the fundamentals of finance and develop a comprehensive understanding of the terminology commonly used by accounting and finance professionals. Experience the improvements in your professional performance as you prepare for senior management positions, where financial awareness is not just valued but crucial.

Who Should Attend

  • Department managers
  • Project managers
  • Business unit leaders
  • Operations professionals
  • Non-finance decision-makers

Course Objectives

At the end of this course, participants will be able to:

  • Integrate financial concepts and policies into the management decision and budgeting process.
  • Evaluate the meaning of profit and loss accounts and balance sheets.
  • Define the four key financial statements: balance sheet, income statement, cash flow, and changes in owner equity, as well as critical financial terms such as profit, margins, and leverage
  • Use ratio analysis and interpretation of key performance indicators.
  • Interpret the financial health and condition of a company, division, or responsibility center and use financial information for management and evaluation
  • Prepare an operating budget and relate it to the organization’s strategic objectives
  • Apply capital budgeting techniques to evaluate long-term decisions in projects and capital expenditures
  • Use cost behavior concepts to calculate breakeven point and enhance short-term decision making

Course Content

Understanding the profit and loss account

  • Profit, operating and capital expense items.
  • Measuring profit and business success Analysing the balance sheet.
  • Evaluating the worth of an established business.
  • Fixed and current assets and liabilities.
  • Linking the profit and loss account to the balance
  • Shareholder equity.

Cash Flow

  • Cash flow, profit, and net worth.
  • Connecting cash management to line management.
  • Maximizing benefits and minimizing costs.
  • Generating unique information from cash flow statements.

The Key Financial Statements

  • Understanding the accounting cycle
  • The five main accounts in financial statements
  • Income statement: A tool for performance measurement
    • Accrual basis versus cash basis
  • Balance sheet: A tool for financial position
    • The balanced status
  • Statement of owners’ equity
  • Statement of cash flows: Why cash is king
  • Wrapping-up: The cycle of financial statements
  • External and internal auditors’ responsibilities

Analysis of Financial Statements

  • Why ratios are useful
  • Horizontal and trend analysis
  • Vertical analysis: Common size statements
  • Building blocks analysis and reading through the numbers:
    • Liquidity ratios: Ability to settle short-term dues
    • Solvency ratios: Ability to settle long-term dues
    • Activity ratios: Ability to manage assets efficiently
    • Profitability ratios
    • Limitations of financial ratio analysis
  • Working capital management
    • Definition of working capital and working capital management
    • Various working capital management strategies

Operating Budget Process and Techniques

  • The meaning of an operating budget
  • Steps to budget development
  • Master budget components
    • Sales forecasting
  • Approaches to budgeting
    • Incremental budgeting
    • Zero-based budgeting
  • Budgetary control and correction

Capital Budgeting: The Investing Decisions

  • Examples of exercises involving capital budgeting exercise
  • Time value of money: A prerequisite for investing decisions
  • Required rate of return for investments (RRRI)
  • Examples of cash outflows for capital projects
  • Examples of cash inflows for projects
  • Net Present Value (NPV) calculation
  • Internal Rate of Return (IRR)

Cost Behavior Concepts and Breakeven Analysis

  • Defining fixed costs
  • Defining variable costs
  • Contribution margin
  • Computing breakeven point
  • Sensitivity analysis: changing assumptions

Table of Contents

Course Code DU0301 Category

Language: English or Arabic

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