Finance & Accounts

FA 2 Reporting and Budgeting (Level 1)

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
Course Code:F/A.2
Subject:Finance
Course Fee:£495
Duration:3 Days
Venue:University of Cambridge, U.K
  • 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