Fundamentals of Finance & Accounting: Understand the Dynamics of Numbers & Make Better Financial Decisions

Introduction

The seminar starts with an overview of the principal subjects of financial management and then focuses on typical objectives, tasks and decisions made by many finance managers in corporations. Understanding the nature of financial reports and being able to analyse and interpret financial information will offer a new perspective on the business operations, which will enable a greater contribution to the success of the business as a whole.

This seminar explains the full scope of how finance and accounting are interrelated. It explores how a clear understanding of the nature of the three cycles of financing, investing and operating a business will help the participant make improvements in their own businesses. The seminar will enable personnel who work both in the finance function as well as those outside, to deal effectively with finance information among their peers.

Seminar Objectives

At the end of the seminar the participants will:

• Become comfortable with using information from real financial statements
• Develop experience in using accounting data to evaluate a firm’s current performance and to forecast future performance
• Master the skills to value a firm using accounting information along with all other information
• Critically examine the quality of information provided by companies
• Understand Accounting terminology and policies
• Understand the relationships between planning, marketing, and accounting and the budgeting process
• Review the income statement, balance sheet, and statement of cash flows
• Be able to add credibility to their budgets Financial statement analysis
• Be able to understand the importance of cash flow forecasting
• Know the difference between cash flow and profitability

Who Should Attend?

This seminar is designed for personnel who do not have an in-depth knowledge of accounting and Finance, and who need to acquire a broader understanding of these important topics to improve their current role or plan their future career. Non-financial personnel who use financial information in their job and are called on to make financial decisions. Sales and marketing executives, project professionals, internal auditors, and any non-financial professionals who needs to read a company’s financial and other accounting reports. It will also be of benefit to vice presidents of manufacturing, marketing or engineering, professionals of human resource, project professionals.

Organisational Impact

The program is an innovative, team-based approach to learning which supports many companies mission of developing a highly skilled work force. The program is designed to support the company’s organizational values in terms enabling employees to learn key finance and accounting skills in an outcome-driven environment, where they can directly apply learned skills to improve their companies profit potential, identify possible finance related improvements, implement changes, and evaluate results.

Personal Impact

Participants will be able to advance their careers as a result of understanding the various subject covered. In particular they will be able to:

• Understand the basic concepts of finance as it relates to their businesses
• Interpret their organizations financial signals
• Think and speak the language of finance
• Read and understand balance sheets and profit-and-loss statements
• Understand how to control and manage a companies cash flow

Competencies Emphasized

Companies that apply best practices realize their finance functions are more than high-cost service centers that process routine transactions and reports. They must tap into the potential value that lies within the finance and accounting functional area. This course is focused on expanding the finance competencies of all staff that have an involvement in finance related information so they can deliver the value-added services to their companies. The competencies emphasised include the necessary technical finance and accounting knowledge, analytical skills needed to review the finance information provided, critical abilities, and ability to make decisions on the data analysed.

Training Methodology

The seminar will be presented through a combination of discussion, exercises, and case studies. Experiences from actual business situations will be used to bring concepts to life. Participants are required to bring, if possible, financial statements from their own organization for analyses in hard or soft copy.

Seminar Outline

Day 1: The Basics

• Accounting Terminology and Policies
• Accounting as an information system
• The accounting equation- what does it mean
• Generally accepted Accounting Principles
• Differentiating between cash and accrual basis accounting
• Basic cash flow statements
• Walking through an Annul Report
• The annual report package
• The role of external auditor
• The accountant’s report and auditor’s opinion

Day 2: Budgeting in today’s competitive business

• The Budgeting Process
• The role of budgeting
• Annual budgeting process
• Identifying and resolving budgeting variances
• Different budgeting systems in use today
• Budgeting tips and techniques

Day 3: How to interpret and Financial Statement Analysis

• Preparing income statement & balance sheet
• Financial and liquidity ratios
• The cash conversion cycle
• Profitability and gearing ratios
• Du Pont Formula
• Financial & Non-financial analysis

Day 4: Planning for Profit

• Plan for cost reduction and profit improvement
• Fixed and variable costs income statement
• Break-even analysis
• Contribution margin
• The importance of fixed-cost allocation

Day 5: Cash Flow Analysis & Forecasting

• Capital budgeting
• Weighted Average Cost of Capital
• Present Value
• Internal Rate of Return – method
• Profitability Index
• Discounted cash flow

The seminar will have a number of break out sessions, multiple choice and other question and answer sessions, and case studies to demonstrate the concepts covered and provide real live practical examples, which will facilitate learning.

Oxford Management Centre
John Eccles House
Robert Robinson Ave
Oxford Science Park
Oxford
OX4 4GP
United Kingdom

Tel: +44 1865 338088

Fax: +44 1865 338100

email info@oxford-management.com