Basics of Business Finance

Introduction:

The Business Finance Fundamentals course focuses on essential skills for creating numerical, graphical, and financial formats necessary for effective business information. The course equips participants with tools to develop crucial information for performance monitoring, planning, and decision-making.

Objectives:

At the end of this Business Finance Fundamentals course, participants will be able to:

• Prepare and control a comprehensive range of business budget components.
• Conduct detailed examinations of budget performance discrepancies.
• Maintain liquidity across various financial scenarios.
• Produce timely cost sheets and accounting information for business activities.
• Track stock movements effectively.
• Apply principles of credit control.
• Utilize business performance measurements for organizational benefit.
• Pursue an internationally recognized certification in Profit and Loss.
• Enhance professional efficiency and skills in the workplace.
• Efficiently prepare and manage business budgets.
• Recognize the importance of liquidity and stock control.
• Elevate the knowledge and professional level of their team.

Training Methodology:

• Case studies
• Interactive lectures
• Group discussions
• Simulations

Course Outline:

Unit 1: Preparing Business Budgets

• Assess the impact of growth and decline on material quantities and financial weights.
• Determine the effects of changes in working hours, wage rates, and overall labor costs.
• Forecast scale effects related to cost area deviations.
• Analyze changes in the degree of diffusion and their monetary values.
• Schedule receipts and payments related to borrowing activities.
• Outline comprehensive budgets for sales, production, materials, labor, overheads, and cash.

Unit 2: Managing Budgets - Budget Deviations/Variances and Budgeting

• Identify significant variances between actual results and budgeted estimates.
• Calculate variances in detail, comparing actual amounts to budgeted figures.
• Classify expenses into fixed, variable, direct, and indirect costs.
• Evaluate budgets with required income or expenditure figures.
• Submit forecasts and perform cost estimates for projects.
• Review and validate estimates and job costing for accuracy.

Unit 3: Liquidity Management

• Examine methods for maintaining adequate liquidity.
• Evaluate wealth management strategies.
• Assess risks associated with investment placements.
• Secure essential financing, including credit and overdrafts.
• Consider risks related to interest rates.
• Review recent developments in banking and financial markets.

Unit 4: Stock and Credit Control

• Calculate stock values and track movements using FIFO, LIFO, and AVCO methods.
• Obtain accurate cost figures.
• Explain the benefits and risks of granting credit.
• Compare credit pricing with cash pricing.
• Use age analysis of debtors to determine actions.
• Measure average credit periods and bad debts in relation to sales.

Unit 5: Measuring Performance

• Understand and implement Key Performance Indicators (KPIs) in an organization.
• Present data using tables and graphical formats, ensuring clarity.
• Determine performance indicators based on customer growth, satisfaction, service quality, efficiency, and productivity.
• Present financial and non-financial performance information through various graphical presentations.
• Assess performance over time using relevant institutional or industry data.
• Provide detailed analysis of financial ratios.