Strategic Accounting Fundamentals for Non-Finance Managers: Enhancing Decision-Making

Introduction:

The importance of managerial accounting becomes evident when both financial and non-financial information needs to be communicated to business managers and other internal stakeholders within the organization.

This advanced decision-making training course emphasizes the process of collecting accounting information and educates practitioners on how to utilize this information effectively to develop credible plans and make informed decisions. Participants will gain extensive knowledge of the concepts, processes, and analytical procedures necessary to succeed in any business environment.

Objectives:

By the end of the Financial Management for Non-Financial Managers course, participants will be able to:

• Identify the activities that fall under the responsibility of financial management.
• Assess the economic health of a business organization or profit center.
• Describe the components of the four major financial statements: balance sheet, income statement, cash flow statement, and statement of owner’s equity.
• Evaluate projections to ensure accuracy in decision-making and fiscal management.
• Explain how understanding financial statements enhances the performance of the business or its departments.

Training Methodology:

• Interactive lectures
• Case studies
• Group discussions
• Role-playing scenarios
• Q&A sessions
• Individual and group presentations

Course Outline:

Unit 1: Introduction to Managerial Accounting

• The goals and functions of financial management.
• Key questions that finance answers and their practical applications.

Unit 2: The Key Financial Statements

• Income Statement (Profit and Loss Statement)
• Statement of Changes in Owner’s Equity
• Balance Sheet
• Cash Flow Statement

Unit 3: Analysis of Financial Statements

• Assessing business performance
• Income statement ratios
• Balance sheet ratios
• Interpreting annual reports of a corporation

Unit 4: Cost Concepts and Decision Making

• Cost-Volume-Profit (CVP) analysis
• Breakeven analysis
• Differentiating economic costs and accounting costs
• Marginal analysis
• Pricing based on unit costs

Unit 5: Capital Projects

• Time value of money
• Cost of capital
• Capital expenditure decision-making
• Evaluation of capital expenditure projects
• Sensitivity and risk assessment and management

Unit 6: Working Capital and the Financing Decision

• Management of current assets
• Managing short-term liabilities

Unit 7: Use of Financial Information as a Management Tool

• Making informed decisions related to finance, marketing, production, and investment

Unit 8: The Budget Process

• Policies and methods
• Cost management