Fundamentals of Finance and Accounting for Non-Financial Managers

Gain the financial fluency needed to interpret reports, justify decisions in dollars and cents, and talk strategically with finance partners. This practical 2-day workshop teaches the essentials of finance and accounting for non-financial managers, demystifying budgeting, profitability analysis and financial performance language, so non-financial leaders can make smarter, data-informed decisions.

Overview

Can you demonstrate your value and ROI to your boss? Are you able to interpret financial reports and make decisions based on the data they provide? Can you draft an accurate budget? Can you justify your ideas in dollars and cents?

You didn’t get to this point in your career only to be held back by weak financial skills. This program for non-financial managers makes the basics of finance accessible to anyone in just 2 days.

You’ll learn how to:

• Interpret and respond appropriately to financial information
• Communicate your contribution to the bottom line
• Uncover drains on profitability
• Make smarter decisions that deliver higher profitability

Financial skills are fundamental to any managerial position. Learn how to think finance, and you’ll expand your career opportunities. From accruals to write-offs to receivables and payables, this workshop shows non-financial managers the concepts, tools, and techniques that can help make each decision pay off—on the job and on the bottom line.

Who Should Participate:

Non-financial managers in every functional area of responsibility in all industries

How You Will You Benefit:

• Get a firm grasp of the numbers side of your job
• Gain greater confidence with a working knowledge of business financials
• Learn how to “think finance” and translate performance into financial terms
• Cultivate proactive working relationships with finance professionals and enhance your value to the organization
• Understand the business dynamics of dollars and cents—and take initiatives that meet your short- and long-term goals
• Take the guesswork out of your decision making and deliver a better bottom line
• Expand your professional expertise—and your career opportunities

What You Will Cover:

• Key finance terms: assets, liabilities, capital, depreciation, capitalization, current ratio and others
• The accounting process: journals and ledgers, how debits and credits work
• Mastering the mind-set: see business in terms of dollars-and-cents decision options that pay off—short- and long-term
• Basic accounting principles
• Applying accounting conventions and guidelines
• Developing working rules regarding your corporate financial statements
• Using the balance sheet to examine assets and liabilities
• Analyzing the income statement to assess revenues and expenses
• The statement of cash flow: sources and uses of funds
• Content and format of the annual report
• Understanding the footnotes
• Debt vs. equity financing
• How leveraging can increase return to shareholders
• Keeping your plan on target with budgetary controls
• Using profit-planning tools, break-even analysis, financial forecasting
• Cash flow: where cash comes from and how it's applied
• Elements of cost accounting
• Analyzing payback method, discounted cash flow, present value and present value index in making profitable capital investment decisions
• Criteria for examining the performance of divisions and product lines
• Understanding the cost of capital
  

Outline

Learning Objectives

• Discuss the Relationship Between the Information Presented on Basic Financial Statements.
• Read and Interpret Basic Financial Statements.
• Understand How to Evaluate a Company’s Financial Health Based Upon the Information Presented in its Annual Report and 10-K Report.
• Calculate Key Financial Ratios to Analyze a Company’s Financial Position And Management Performance.
• Identify Other Sources of Financial Information.
• Improve Their Company’s Profitability Through an Understanding of Cost and Break-Even Points.
• Compare the Rate of Return for Various Investments and Determine Which Are Good Uses of the Firm’s Assets

Basic Accounting

• Discuss the Importance of the Accounting Equation
• Explain the Significance of Generally Accepted Accounting Principles (GAAP)
• Describe the Accrual Process
• Differentiate Between Accounting Profit and Cash Flow

How Accounting Works and Understanding Financial Statements

• Describe an Income Statement or Profit and Loss Statement (P&L).
• Discuss a Balance Sheet and its use.
• Identify a Statement of Retained Earnings
• Describe a Cash Flow Statement.
• Prepare a Simple set of Financial Statements.
• Summarize the Accounting Process, from the Recording of Business Transactions to the Preparation of Financial Statements.
• Share How Various Business Transactions Affect the Financial Statements.

Reviewing an Annual Report

• Identify the Components of an Annual Report
• Explain the Importance of Notes in Evaluating Financial Statements
• Describe an External Auditor’s Role and the Significance of the Opinion Letter

Evaluating a Company’s Financial Statements

• Calculate the Key Financial Ratios Using the Financial Statements
• Use Financial Ratios to Evaluate an Organization’s Liquidity, Leverage and Profitability; The Performance of an Organization as Compared to Its Competitors; and An Organization’s Performance Compared with Budgeted Goals
• Identify Sources of Financial Information Beyond the Financial Statements
• Use the DuPont Formula to Evaluate Management Performance
• Use the Concept of Economic Value Added (EVA®) and Cash Flow Return on Investment (CFROI) to Determine if a Segment of an Organization is Adding Value to the Business

Improving Profitability Through Cost Analysis and Profit Planning

• Differentiate Between Fixed and Variable Costs
• Help Your Organization Improve Profitability Through the Use of Breakeven Analysis, Contribution Margin Analysis, and Direct Costing in Appropriate Situations
• Explain Traditional Cost Accounting and Its Limitations
• Discuss the Relevance of Activity-Based Costing in Today’s Business Environment

Making Major Financial Decisions with Capital Expenditure Analysis

• Define the Capital Budget
• Explain Why Cash Has a Time Value
• Recognize and Apply Different Methods of Evaluating Capital Expenditures and Monitoring Project Performance
• Budgeting More Effectively
• Discuss the Role of Budgeting and Issues That Budgets Can Solve

Describe the Budgeting Process

• Identify Different Types of Budgeting Systems in Use Today
• Analyze Budgets for Different Purposes
• Recognize and Apply Different Methods of Evaluating and Monitoring Operating Performance

Course Highlights

• Review Program Summary and Expectations
• Determine the Actions That You Will Take When Returning to Work Based on What You Have learned in the Program
• Generate a List of Questions to Take with You and Further Your Learning