Improve your effectiveness in the management of finances in your organisation or department
Accredited by: LONDON INSTITUTE OF SKILLS DEVELOPMENT SIGNATURE PROGRAMME
Who should attend?
Those for who have studied finance and its part of their responsibility or they are new to management and need a greater understanding of financial management. It is an ideal course to attend prior to the Level 2 course. Participants will be from all sectors, including private, public and not-for-profit including:
- New managers or managers wanting to update their financial knowledge
- Budget holders who are responsible for creating and managing their department’s budgets
- Operations managers who want to know more about cost management and projects
- Senior sales and marketing employees who have to understand financial statements
- Senior managers who require greater financial literacy skills
- Managers facing strategic financial decisions or expect to make a contribution to a wider planning process.
- Junior Managers, Fresh Graduates & Final Semester Students to acquire a promising career in a reputable organization.
Learning Objectives
By the end of the course delegates will be able to:
- Describe the major concepts underpinning accounting and finance
- Interpret and apply financial information in a business environment
- Put together a budget enabling you to justify expected expenditure
- Assess and measure budgetary performance
- Conduct effective investment appraisals
Course Content
Concepts and Principles
- Financial accounting and management accounting – the differences
- Cash and accrual accounting compared and when they are used
- International accounting standards – formats and content
- The distinctive character of public sector accounting and budgeting
Interpreting Financial Statements
- The income statement (P & L) statement, format, content and key concepts
- Interpretation of key ratios derived from the income statement; P/E ratio, Profit margin
- The language and major components of the balance sheet
- Business ratios derived from the balance sheet and P & L together, liquidity, debt, profitability etc.
Investment Appraisal
- Defining the value generated and the required return – the hurdle rate
- Return on capital employed – calculation methodology and interpretation
- Payback period calculations
- NPV and IRR calculations
- Non-financial aspects of investment appraisal and decision making
Essential Budgeting Processes
- Purpose and benefits, problems and limitations of capital and operational budgets and the important differences
- Budget processes in the private sector
- Budget processes in the public sector
- Identification of risks to the budget and actions to mitigate them
Measuring Financial Performance
- What is financial performance?
- Financial performance in the public sector
- The importance of cash flow – how to measure and improve it
- Gross profit, operating profit, net profit margin
- Key performance ratios