Finance for Non Finance and Budge Preparation

Finance for Non Finance and Budge Preparation

  • Country: United Arab Emirates

  • City: Abu Dhabi

START DATE: 08 Sep 2019

END DATE: 12 Sep 2019


  • COURSE TYPE: Variety Programs



Finance for Non Finance and Budge Preparation

Why Attend

To succeed at any employment level and position, knowledge of basic financial principles is critical. 'Finance for non-Finance Professionals' transforms financial and accounting concepts into decision making tools you can use successfully every day. You will learn to apply the fundamentals of finance to improve budget management, increase potential profits, and assess the financial performance of business activities. You will also understand the terminology used by accounting and finance staff and will feel more confident when being involved with them or using them. This course will help you do a better job and prepare you for senior management positions where financial awareness is crucial.


Course Methodology

The course uses a mix of interactive techniques, such as brief presentations by the consultant, case studies and group exercises to apply knowledge acquired throughout the course.


Course Objectives

By the end of the course, participants will be able to:

=         Define the four key financial statements: balance sheet, income statement, cash flow and changes in owner equity as well as key financial terms such as profit, margins and leverage used in organizations

=         Interpret the financial health and condition of a company, division or responsibility center and use financial information for management and evaluation

=         Distinguish between accounting and finance and explain the finance role in running businesses

=         Prepare a company's operating budget and relate it to the organization's strategic objectives

=         Apply capital budgeting techniques and cost-volume-profit analysis to enhance decision making

  • Learn costing and budgeting terminology used in business
  • Understand the importance of a well-defined costing and budgeting process
  • Determine full costs of outputs for the goods and services provided
  • Master traditional techniques and recent best practices
  • Link finance and operation for budgeting purposes and strategy execution
  • Learn how to build a comprehensive performance measurement system 

Course Outline

=         The key financial statements

=         Understanding the accounting cycle

=         The five main accounts in financial statements

=         Income statement: tool for performance measurement

=         Accrual basis versus cash basis

=         Balance sheet: tool for financial position

=         The balanced status

=         Statement of owners’ equity

=         Statement of cash flows: cash is king

=         Wrapping-up: the cycle of financial statements

=         External and internal auditors’ responsibilities

=         Analysis of financial statements

=         Why are ratios useful

=         Horizontal and trend analysis

=         Vertical analysis: common size statements

=         Common size financial 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

=         Working capital management strategies for current assets

=         Balancing profitability and liquidity

=         Working capital management strategies for current liabilities

=         trade-off between profitability and certainty

=         Recap: concept of financial management

=         Accounting versus finance: rules and responsibilities

=         Three pillars of finance

=         Financing decisions

=         Investing decisions

=         Operating decisions

Budgeting and Its Role Within the Management Process

  • The Role of Budgeting within Management Accounting
  • Linking Costing and Budgeting to Strategy and Performance Measurement
  • The Process of Value Creation: Implications for Budgeting
  • What is a budget and why costing is fundamental?
  • Budgets - the financial expression of the operating plan
  • Linking Financial and Operational Issues

Costs Analysis for Budgetary Purposes

  • Costing for Budgeting: Why?
  • Cost Terms and Purposes
  • Fixed and Variable Costs
  • Cost, Volume, Profit (CVP) Relationships
  • The Key Concept of Contribution Margin
  • Direct and Indirect Cost – the allocation problem

The Framework for Budgeting

  • Elements of the Budgeting Framework
  • Key Concepts and Terminology
  • Advantages and Disadvantages: critical issues to be discussed
  • Overview of the Financial Statements
  • Balance Sheet, Income Statement, and the Statement of Cash Flows
  • Introducing Cost Analysis for Decision-making

Flexed Budgets and Variance Analysis

  • Budgeting for Management Control Purposes
  • Explain Why Standard Costs are used in Variance Analysis
  • Describe the difference between a Fixed Budget and a Flexed Budget
  • Compute Flexed Budget Variances and Sales Volume Variances
  • How to interpret variance analysis?
  • Integrate continuous improvement into Variance Analysis

Beyond Budgeting: Broadening Performance Measurement Systems

  • Shortcomings of Traditional approaches to Budgeting and Measurement
  • Linking Financial to Operational Issues
  • Linking Strategy to Performance Measurement
  • The Balanced Scorecard and Six Sigma
  • Financial Perspective
  • Customer Perspective