Course Objectives

• Understand the financial and accounting terms used in business.
• Develop skills in financial literacy.
• Understand the main financial statements and how to be used to monitor and control business performance.
• Understand the financial language, asking relevant financial questions, and making business decisions using financial criteria.
• Highlight the need for good budget construction and the basic techniques for budgetary control.
• Develop operating budgets
• Understand how cash budgeting can affect motivation and control

Who Can Benefit

• Non-financial managers and anyone from non-financial disciplines who needs to know more about business finance terminology.

Course Outline

• Finance and Accounting
  • The World of Finance and Accounting.
  •  Why Do We Have Accounting Systems?
  •  The Goal of Good Management is to Create Value
  •  The Three Management Functions
  • Financial vs. Managerial Accounting
  • New Management Trends to Create Value
• What is Profit?
  • Definition and Importance of Profit.
  • How much profit can we make?
  • Management by the Numbers
  • Volume Based Cost Behavior Patterns
  • Contribution Margin Based income Statements
  • Cost-Volume-Profit (CVP) Analysis
  • Using CVP to Manage
  • How does the CVP Chart Change to Reflect Cost Management
  • What Questions Can we Answer?
•  The importance of Cash Flow
  • How money works in business.
  • Why profit and cash are not the same.
  •   How much cash can we take?
  • The Cash Management Process
  • Planning Motivates Control Through Evaluation
  • Budgeting in an Uncertain Business World — Solvency Management
  • Factors Influencing the Need for Budgeting & Planning
  • What Makes the Budgeting Process Successful?
• Breaking Down the Financial Statement Barrier
  • Assets and Liabilities.
  • Working Capital Management.
  •   Key ratios to improve asset utilization and profitability.
• Expenditure Planning and Financial Decision Making
  • Cost benefit analysis.
  • Capital expenditure decisions.
  • What is Capital Expenditure?
  • Nature of Capital Investment Decisions
  •   What is Capital Budget?
  • Stages of Capital Budgeting Process
  • Relevant Cash Flows
  • Methods of Evaluating Capital Investments
  •   Sensitivity analysis.
• Budgeting for Profit
  • Definition of a budget.
  • Purpose of a budget.
  • How to construct a budget.
  • How to use a budget for financial control.
• Motivation and Control through Budgeting
  • The Motivational Cycle
  • The Control Environment
  • How Much Accounting Control Do We Need?
  • Types of Controls
  • Centralized vs. Decentralized Controls
  •   Responsibility Centers used in Accounting Control Systems
  •   Limitations for 'Management by the Numbers' or Accounting Control
  • Evaluation of Managers and Divisions
  • Cost of Capital Employed
  • Accounting Performance Measures
  •   Do Our Accounting Systems Encourage Good Judgment?

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