Essential Concepts in Finance & Accounting

Introduction:

In the rapidly evolving business landscape and increasing competition, financial acumen has become essential for managers across all organizations. This program offers a fresh and engaging approach to finance and accounting, particularly designed for those who find these subjects challenging. It aims to equip participants with the skills needed to confidently engage in financial discussions with peers and professionals.

Objectives:

By the end of this course, participants will be able to:

• Apprehend and analyze various financial statements.
• Evaluate business performance.
• Assist in managing cash and working capital.
• Prepare budgets and control expenditures.
• Create and present business cases using financial tools.
• Understand basic finance principles relevant to their business.
• Assess their organization's financial health.
• Use basic financial terminology.
• Analyze balance sheets and income statements.
• Manage cash inflows and outflows effectively.
• Attain an accounting fundamentals certificate.

Training Methodology:

• Classroom teaching
• Business cases
• Workshops
• Exercises
• Discussions
• Money market trading
• Case studies
• Q&A sessions

Course Outline:

Unit 1: The Basics

• Definitions and measures in accounting
• Accounting as an information system
• The accounting equation and its importance
• Generally Accepted Accounting Principles (GAAP)
• Cash vs. accrual basis accounting
• Basics of cash flow statements
• How to read an annual report
• Components of the year’s report package
• Responsibilities of external auditors
• Examination of accountant's and auditor's reports

Unit 2: How to Read Accounts: Analyzing Accounting Information and Financial Reports

• Creating income statements and balance sheets
• Financial ratio analysis, including liquidity ratios
• Cash conversion cycle
• Efficient capital management
• Impact of financial gearing on profit
• Application of the DuPont formula
• Financial and non-financial analysis
• Principles of credit research
• Overview of Z-scores and credit ratings
• How banks make loan decisions

Unit 3: Planning for Profit

• Relationship between cost structure and profits
• Strategies to reduce costs and increase profits
• Fixed vs. variable expenses
• Break-even analysis
• Understanding contribution margin
• Costing methodologies: total absorption costing, marginal costing, and ABC
• Application of standard cost systems
• Cost management techniques

Unit 4: Budgeting in the Modern Business Era

• Basics of the finance budgeting process
• Importance of budgeting
• Structure of the budgeting cycle
• Handling budgeting variances
• Contemporary budgeting methods
• Examples of efficient budgetary provisions
• Fundamentals of variance analysis review

Unit 5: Cash Flow & Its Relation with Investment Decisions

• Capital budgeting techniques
• Computing Weighted Average Cost of Capital (WACC)
• Concepts of present value
• Internal Rate of Return (IRR) method
• Investment evaluation using profitability index
• Discounted cash flow analysis

Conclusion:

This course aims to provide a foundational understanding of finance and accounting principles and their practical applications in business. It is designed to enhance financial accountability and decision-making capabilities, whether you are experienced in finance or new to the field.