Finance for Non-Finance Managers

Self-learning Course Info

Fees: 550

Type: Self-learning

Self-learning Course Details

Self-learning Course Outline

Self-learning Course Content

Part 1


The Nature and Purpose of Finance and Accounting


  • A basic model of an organisation’s financial framework
  •  Understanding the accounting process
  • The five primary accounts in financial reports
  • Income statement: a tool for assessing performance
  • Accrual basis vs cash basis
  • Balance sheet: a tool for evaluating financial standing
  • The balanced condition
  • Statement of owners’ equity
  • Statement of cash flows: cash is vital
  • Conclusion: the flow of financial statements
  • Responsibilities of external and internal auditors


Part 2


Analysis of Financial Statements


  • Why are ratios beneficial
  •  Horizontal and trend analysis
  • Vertical analysis: common-size reports
  • Building blocks analysis and interpreting the figures:
  • Liquidity ratios: ability to settle short-term obligations
  • Solvency ratios: capacity to settle long-term obligations
  • Activity ratios: efficiency in managing assets
  • Profitability ratios
  • Limitations of Financial Ratio Interpretation


Part 3


Working Capital Management


  • Defining working capital and its management
  • Strategies for managing current assets in working capital
  • Balancing profitability and cash flow
  • Strategies for managing current liabilities
  • The trade-off between profitability and stability


The Concept of Financial Management


  • Accounting vs finance: principles and duties
  • Three main areas of finance:
  • Financing decisions
  • Investment decisions
  • Operational decisions


Part 4


Breakeven Analysis and Decision Making


  • Identifying fixed costs
  • Identifying variable costs
  • Contribution margin equation
  • Calculating the breakeven point
  • Sensitivity analysis: altering assumptions


Operating Budget Process and Techniques


  • What is an operating budget
  • Stages of budget creation
  • Master budget components
  • Sales projection
  • Approaches to budgeting
  • Incremental budgeting
  • Zero-based budgeting
  •  Budget control and adjustments


Part 5


Capital Budgeting: The Investment Decisions


  • Examples of capital budgeting exercises
  • Time value of money: a necessity for investment decisions
  • Required return rate for investments
  • Examples of cash outflows for capital projects
  • Examples of cash inflows for projects
  • Net present value calculation
  • Internal rate of return