Finance For Non-Financial Managers

In-Company Course Overview

This management training course is designed to give managers an introduction to interpreting information in financial statements and how that information can be used for planning, decision-making and control of business operations.

The course will develop commercial insight by connecting the numbers with real world business decision-making. This is achieved through case studies of actual companies and topical issues using the Financial Times. Examples are used to encourage participants to ‘learn by doing’.

Who Should Attend

Managers in any non-financial function, who are responsible (currently or after promotion) for improving the financial performance of a business unit and/or are required to take financial issues into consideration when evaluating customers or suppliers, constructing budgets, setting prices, controlling costs or making capital investment proposals.

Course Objectives

After attending this course, participants will be able to:

  • See how finance impacts on their whole business
  • Read and interpret their statutory accounts that include balance sheets and profit and loss accounts
  • Use balance sheet information to make better business decisions
  • Understand the difference between profit and cash flow
  • Use management ratios to analyse and improve business performance
  • Produce financial reports that can make a real difference to the running of their profit centre
  • Make costing and pricing decisions
  • Improve credit control and working capital issues

Course Programme

Financial Management
The role of finance in business
Financial responsibility
The legal responsibilities

Understanding Balance Sheets
How to assess a company’s strengths and weaknesses
How much of the data is fact and how much arbitrary
Different types of ‘strong’ balance sheets

Analysing Profit And Loss Accounts
Understanding profit drivers
How gross profit relates to net profit
Analysing cost
Earnings per share

Cash Flow Forecasts
Where the money comes from and where it goes
Identifying the cash flow danger signals
Constructing and controlling budgets
Over-trading and other cash related problems

Improving Capital Projects Assessments
Evaluation methods
Payback periods and return on investment
Present value and discounted cash flow
Preparing a financially justified proposal

Conventional Costings
Absorption costing
Marginal costing
Combined absorption and marginal costings
Activity based costing

Pricing To Deliver Strategic And Tactical Objectives
Different pricing methods
The difference between costing and pricing
Pricing for maximum profit
Pricing for standard products and for specials

Making Better Financial Decisions
Incremental costing and sunk costs
Cost centres and the concept of contribution
The make-in or buy-out decision
The break-even concept

Using Management Ratios To Improve Performance
How to assess business performance, growth and profitability
Liquidity, solvency, efficiency and investment attractiveness
Valuing companies
The City perspective
Valuing for acquisitions and take-overs

The Working Capital Cycle
How to make credit control work
Releasing dead capital and raising new capital
Financial efficiency throughout the company

Personal Development Plan
Developing an individual action plan for implementation back in the workplace

To discuss how this management training course could improve your commercial insight or to talk through your requirements, including tailoring this course to suit your exact needs, please contact:

Claudine McClean